Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company and its common stock:
Current dividend per share (D₀) $2.00Dividend payout ratio 55% ROE 9%
If the required return is 8%, the intrinsic value per share using the Gordon growth model is closest to:
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:
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$50.63.
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