For the company KROGER!!! The stock price is of Kroger is $39.98...
50.1K
Verified Solution
Link Copied!
Question
Finance
For the company KROGER!!!
The stock price is of Kroger is $39.98
The cost of equity is 8.9%
Kroger's next year dividend is 0.21 per share
Kroger's constant growth rate is perpetuity is 1.8%
For the company KROGER!!!!
You must compute an intrinsic value of the stock using both valuation methods listed below: 1) Dividend growth model: constant dividend growth with an infinite horizon (below). Using the cost of equity you calculated in parti), compute an intrinsic value for the stock. Be sure to justify your assumed dividend growth rate (g). Div, X (1 + g) price, = r - 8
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.