Fair present value of limited brands stock


Problem:

Financial analysts forecast Limited Brands (LTD) growth for the future to be 13.6 percent. LTD's most recent dividend was $2.30.

Required:

What is the fair present value of Limited Brands's stock if the required rate of return is 16.4 percent? Explain in detail and provide explanation.

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Finance Basics: Fair present value of limited brands stock
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