Freedom Corporation recently paid a common stock dividend of $2.50. Analysts predict that the firm and its dividends will grow at a rate of 4% per year. Freedom has a beta of 1.35. The current risk-free rate of interest is 5.0% and the current return on the market is 13%. What is the intrinsic value of Freedom's common stock? $22.03 $114.50 $70.34 $100 O $53.68
Freedom Corporation recently paid a common stock dividend of $2.50. Analysts predict that the firm and its dividends will grow at a rate of 4% per year. Freedom has a beta of 1.35. The current risk-free rate of interest is 5.0% and the current return on the market is 13%. What is the intrinsic value of Freedom's common stock? $22.03 $114.50 $70.34 $100 O $53.68
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
Section: Chapter Questions
Problem 1PS
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