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intrinsic value of General Machine stock

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General Machine currently pays a dividend of $4 per share on its common stock. The dividend is expected to grow at 5% per year forever. Stocks with similar risk currently are priced to provide a 12% expected return. What is the intrinsic value of General Machine stock?

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This solution is comprised of a detailed explanation to calculate what is the intrinsic value of General Machine stock.

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General Machine currently pays a dividend of $4 per share on its common stock. The dividend is expected to grow at 5% per ...

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