An analyst gathers the following information about a company and its common stock:
| Current dividend per share (D₀) | $2.00 |
|-------------------------------|-------|
| Dividend payout ratio | 55% |
| ROE | 9% |
If the required return is 8%, the intrinsic value per share using the Gordon growth model is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
An analyst gathers the following information about a company and its common stock:
Current dividend per share (D₀)
$2.00
Dividend payout ratio
55%
ROE
9%
If the required return is 8%, the intrinsic value per share using the Gordon growth model is closest to:
