Intrinsic Worth of the Stock Assignment
Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $ 61.13 per share. She expects the price of the stock to rise to $ 66.76 over the next 3 years. During that time she also expects to receive annual dividends of 5.54 per share.
a. What is the intrinsic worth of this stock, given a required rate of return of 8%
b. What is its expected return?
a. The intrinsic worth of this stock is. _____ (Round to the nearest cent.)
b. The expected return is _____ %. (Round to one decimal place.)
(Cash flow/ Financial Calculator question)
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