Advertise-In-Print Ltd. currently has an earnings growth rate of -15%, i.e., their earnings are declining at the rate of 15% per year. This rate of earnings decline is expected to stay constant henceforth. Advertise-In-Print Ltd.'s next year's dividend per share is expected to be equal to $1.00 and their cost of equity is 10%. What is the intrinsic value of one share of stock in Advertise-In-Print Ltd. equal to? Options -  $4 $10 $6.67 $20

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Q 20) Advertise-In-Print Ltd. currently has an earnings growth rate of -15%, i.e., their earnings are declining at the rate of 15% per year. This rate of earnings decline is expected to stay constant henceforth. Advertise-In-Print Ltd.'s next year's dividend per share is expected to be equal to $1.00 and their cost of equity is 10%. What is the intrinsic value of one share of stock in Advertise-In-Print Ltd. equal to?

Options - 

$4
$10
$6.67
$20
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