Investors expect that Aviation Aircraft Parts, will pay a dividend of $1.95 in the coming year. Investors require a(n) 12.1% rate of return on the company's shares, and they expect dividends to grow at 7.5% per year. Using the dividend valuation model, find the intrinsic value of the company's common shares.

Investors expect that Aviation Aircraft Parts, will pay a dividend of $1.95 in the coming year. Investors require a(n) 12.1% rate of return on the company's shares, and they expect dividends to grow at 7.5% per year. Using the dividend valuation model, find the intrinsic value of the company's common shares.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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