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Suppose currently T-bill rate is 2% and S&P 500 return is 10%. The beta of GM is 1. GM just paid a dividend of 1.5 dollars per share, and...

Suppose currently T-bill rate is 2% and S&P 500 return is 10%. The beta of GM is 1.7. GM just paid a dividend of 1.5 dollars per share, and dividend growth rate of 10%. What is the intrinsic value of GM stock per share?

A. 23.74

B. 15.58

C. 26.79

D. 29.46


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2 comments
  • Thank you so much :)
    • ScottHenkel
    • Aug 07, 2018 at 10:49am
  • Most glad to help :)
    • payaljain3
    • Aug 07, 2018 at 10:52am

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 intrinsic value of... View the full answer

2 comments
  • Thank you so much :)
    • ScottHenkel
    • Aug 07, 2018 at 10:49am
  • welcome
    • alice309
    • Aug 07, 2018 at 10:53am

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