Which of the following is not an advantage of the valuation multiple method as compared tothe discounted cash flow method? a) calculations based upon widely available informationb) based upon actual stock prices of real firmsc) does not rely on estimates of future cash flowsd) takes into account important differences between different firms

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?