What is the intrinsic worth of this stock

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Reference no: EM131892680

Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $ 61.47 per share. She expects the price of the stock to rise to $ 74.37 over the next 33 years. During that time she also expects to receive annual dividends of $ 6.87 per share.

a. What is the intrinsic worth of this stock, given a 9 % required rate of return?

b. What is its expected return?

Reference no: EM131892680

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