Solutions to Assignment 4

Price today = $30.247. 14c. With these new assumptions, Disney stock has an intrinsic value below its market price. This analysis indicates a sell recommendation. Even though Disney’s 5-year growth increases, so does its beta and risk premium. 16. A B. Dividend payout ratio 0.50 0.606. Growth rates 0.07 0.04728. Intrinsic value $33.33 $18.97 ................
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