SFA Exam Russia

Practice session

A dividend-paying consumer goods corporation just paid an annual dividend (D_0) of 20.00 RUB per share. Dividends are expected to grow at a perpetual constant rate of 5.0% per annum indefinitely. An equity analyst specifies a required rate of return of 13.0% for this stock. According to the Gordon Growth Model, what is the intrinsic value per share?

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