The firm believes that its stock price at December 31, 20X11, does not accurately reflect...

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Accounting

  1. The firm believes that its stock price at December 31, 20X11, does not accurately reflect its intrinsic value on the same date. Assume that 20X11 dividends were $31,049.

  2. Calculate the intrinsic value of stock at year-end 20X11.
    Explain the pros and cons of purchasing the treasury stock at year-end 20X11.
    What is the dividend and capital gains yield for 20X12?
    What is the dividend and capital gains yield for 20X14?

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