HW 7, quiz Flashcards by Devin Brown | Brainscape

Q

Intrinsic value

A

V0 = D0(1+g) / k-g

D0 = total dividends/# shares outstanding

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Q

Terminal Value

A

D4(1+g) / k-g

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Q

Terminal value given PE ratio

A

= PE * (D4/payout ratio)

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Q

Dividend yield increases as ___

A

stock price decreases

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Q

Expected dividend yield

A

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