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22.If an investor expects dividends from shares of common stock for the next three years to be D1, D2 and D3 and the selling price of the stock two and three years from now, P2 and P3 respectively, what is the intrinsic value of the stock today based on the dividend discount model?
Equity Valuation: Concepts and Basic Tools –Question Bank Page 6 C.308.65 29.An analyst is attempting to value shares of Mitsubishi. Mitsubishi has just paid a dividend of $5 per share. Annual dividends are expected to grow at the rate of 6% per year over the next three years. At the end of three years, shares of Mitsubishi are expected to sell for $ 70. If the required rate of return is 10%, the intrinsic value of a share is closestto: A.$ 56.38. B.$ 66.53. C.$ 45.63.