Microtell Corp paid $10 dividend last year. Assuming they pay dividend each year what will be the intrinsic value of Microtell if the
required rate of return is 12%? Assume zero growth rates
Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10%
per year. The risk-free rate of return is 4% and the expected return on the market portfolio is 13%. The stock of Interior Airline has a beta of 4.00. Using
the constant growth DDM the intrinsic value of the stock is
Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2.00 a dividend in year 2 of
$3.00 and a dividend in year 3 of $4.00. After year 3 dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock
is 12%. Using the multistage DDM the stock should be worth