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The pancake corporation recently paid a 3 dividend and is

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The Pancake Corporation recently paid a $3 dividend, and is expected to grow at 5% forever. Investors generally require an expected return of at least 9% before they'll buy stocks similar to Pancake.

a. What is Pancake's intrinsic value?

b. Is it a bargain if it's selling at $76 a share?

Reference no: EM13574949

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