Alset Inc. just paid a $2.30 dividend,and its dividends are expected togrow at the rate of 12% for 6 years.You assume that after year 6 thegrowth rate of dividends will slowdown to 4% per year forever. If theexpected return on a comparablestock is 8%, what should be yourestimate of the fair value of the AlsetInc.s stock today?a. $82.25b. $78.34c.$90.09d. $86.17e. $94.01

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Answered: Alset Inc. just paid a $2.30 dividend,…

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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