Constant growth ddm-intrinsic value


Todd Mountain Development Corporation is expected to pay a dividend of $3.00 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 17%. The stock of Todd Mountain Development Corporation has a beta of 0.75. Using the constant growth DDM, the intrinsic value of the stock is

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Finance Basics: Constant growth ddm-intrinsic value
Reference No:- TGS051677

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