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We have the following information for the Valverde company. The stock pays a $10  dividend, and it...

We have the following information for the Valverde company. The stock pays a $10  dividend, and it will grow by 100% the first year, 30% the second year and 3% forever   after that. You know the ROR in the S&P 500 is 11%, the Bheta is 1.2 and the Treasury bond rate is 4%. Derive the value of Valverde.

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Expert Solution

hence value of valverde = $ 38.37+ $225.5= $263.87

jeff jeffy answered 2 years ago
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