Estimate intrinsic value of firms stock based on assumption

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Reference no: EM131575477

Firm currently pays a dividend of 4 EURO per share. That dividend is expected to grow at a 5% rate indefinitely. Stocks with similar risk provide a 10% expected return. Estimate the intrinsic value of the firms stock based on the assumption that the stock will be sold after 2 years from now at its expected intrinsic value.

Reference no: EM131575477

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