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Suppose that on further analysis you decide that after year 5 McDonald’s earnings and dividends will grow by a constant 4% a year. How does this affect your estimate of the value of McDonald’s stock at
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Suppose that on further analysis you decide that after year 5 McDonald’s earnings and dividends will grow by a constant 4% a year. How does this affect your estimate of the value of McDonald’s stock at year 0?

User Spoida
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Answer:

it affects it because year 0 is the present state more like present value of the stock in five years. especially in a method like intrinsic.

Step-by-step explanation:

User Alana
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