Assume that the risk-free rate of return (Krf) is 3% and the
required rate of return on the market (Km) is 8%. A given stock,
say, Caterpillar (CAT) has a beta coefficient of 1.03. If the
dividend per share during the coming year, meaning D1,
is $4.12 and g = 3.50%, what is the current intrinsic value of the
stock?
Exactly how much was D0?
How long will it take for the dividend to double, given the
growth rate, approximately?...