Asked Nov 23, 2019

Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 12.00 percent. Their recent dividend was $1.93. What is the value of their stock when the required rate of return is 17.00 percent?


Expert Answer

Step 1

Calculation of Value of Stock:

The value of stock is $43.23.

Excel Spreadsheet:

1 Current Dividends
2 Growth Rate
3 Required Return
Value of Stock $43.23

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А В 1 Current Dividends 2 Growth Rate 3 Required Return Value of Stock $43.23 $1.93 12% 17% 4


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