HW9

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Temple University *

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Course

3507

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

Pages

43

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Required: Explanation = $27.67 27.6678571 Deployment Specialists pays a current (annual) dividend of $1 and is exp Intrinsic value =  V D 1 /(1 +  k ) +  D 2 /(1 +  k ) 2  + ... + (1 × 1.22)/(1 + 0.120) + ($1 × 1.222)/(1 + 0.120)2 +
pected to grow at 22% for two years and then at 7% thereafter. If the requir ( D H  +  P H )/(1 +  k ) H + ($1 × 1.222 × 1.07)/((0.120 − 0.07) × (1 + 0.120)2) ×
red return for Deployment Specialists is 12.0%, what is the intrinsic value × 1.22)/(1 + 0.120) + ($1 × 1.22 2 )/(1 + 0.120) 2  + ($1 ×
of its stock?  (Do not round intermediate calculations. Round 1.22 2  × 1.07)/((0.120 − 0.07) × (1 + 0.120) 2 )
d your answer to 2 decimal places.)
Explanation SOLVE FOR PVGO 44= (2.60/0.06) + PVGO ri-coat Paints has a current market value of $44 per share with earnings o Price = $44 = ( E 1 /k ) + PVGO = ($2.60/0.06) + PVGO   P
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