SCI just paid a dividend (Do) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (rs) on SCI's stock is 16.25%, then the intrinsic value of SCI's shares is ..... per share.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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SCI just paid a dividend (Do) of $3.12 per share,
and its annual dividend is expected to grow at
a constant rate (g) of 6.50% per year. If the
required return (rs) on SCI's stock is 16.25%,
then the intrinsic value of SCI's shares is
per share.
Transcribed Image Text:SCI just paid a dividend (Do) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (rs) on SCI's stock is 16.25%, then the intrinsic value of SCI's shares is per share.
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