Windsor Corporation paid a cash dividend of $2.15 per share eight years ago to the firm’s commonstock holders. Recently, the firm paid a dividend of $4.13. Dividends are expected to grow in the future at the same annual rate as during the past eight years. The required rate of return on Windsor common stock is 12 percent. a) What should be the intrinsic value of a share of Windsor common stock? b) If the current market price of Windsor is $120, what is your expected rate of return?
Windsor corporation
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