Suppose that skecher s stock paid a dividend of 080 last


Suppose that Skecher s stock paid a dividend of $0.80 last year and that the dividend is expected to grow by a constant rate of 7% per year. Skecher s beta is 1.24, the current risk-free rate is 2% and the market risk premium is 7%. What is the intrinsic value (current price) of Skecher's stock?

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Financial Management: Suppose that skecher s stock paid a dividend of 080 last
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