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Question: business school problem 3 20 points your task is to...

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Business School Problem 3: (20 points) Your task is to value the stock price of Tornado with the Dividend Discount Model (DDM) in stable growth. You have the following information: Recent dividends per share (DIVo) Risk-free rate (n) Beta of the stock (B) Average stock return on the market Estimated long-term dividends growth rate g 5.32 3.75% 1.7084 10% 3% 1) Calculate the value of the stock of Tormado using the Dividend Discount Model (DDM) in stable growth. 2) The stock currently trades at 34.71 in the stock market; would you recommend buying it? · (15 points)
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