D0 = $2 You Assume a Growth Rate of 25% for the for the First

question 35

Multiple Choice

D0 = $2. You assume a growth rate of 25% for the first two years and a constant 8% thereafter. You require a 14% rate of return. The intrinsic value is

• A) $43.22.
• B) $54.18.
• C) $41.94.
• D) $47.88.

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