Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY