15. Suppose that Skecher's stock paid a dividend of $0.80 last year, and the divided is expected to grow by a constant rate of 6% 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 this stock?
15. Suppose that Skecher's stock paid a dividend of $0.80 last year, and the divided is expected to grow by a constant rate of 6% 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 this stock?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 3P
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