Examveda
Examveda

Third step in calculating value of stock with non-constant growth rate is to find

A. PV of expected dividends

B. FV of expected dividends

C. PV of intrinsic rate

D. FV of intrinsic rate

Answer: Option A

Solution(By Examveda Team)

Third step in calculating value of stock with non-constant growth rate is to find PV of expected dividends. The first component of value is the present value of the expected dividends during the high growth period.

This Question Belongs to Commerce >> Financial Management

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