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Question
Seaside Toys currently earns $2.00 per share and currently pays $1.00 per share in dividends. It is expected to have a constant growth rate of 5 percent per year. The required rate of return is 15 percent. What is the intrinsic value of this stock?a. $6.67
b. $7.00
c. $10.00
d. $10.50
Answer
This answer is hidden. It contains 46 characters.
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