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  "documentTitle": "why invest in goldman sachs",
  "authorId": "GoldmanSachs",
  "authorName": "St. John's University Student Managed Investment Fund",
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  "notes": "The slide presents multiple tables showing sensitivity analysis of intrinsic value (IV) relative to dividend growth (G) and cost of capital (K).",
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      "text": "Based on this valuation model, we believe the company's growth will not slow down to growth levels of 11.362%, 6.626%, or 8.35%, which leads us to believe that the value of the stock should be higher than its current price.",
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      "text": "Intrinsic Value: $425.43",
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      "text": "As we saw on the previous page, Goldman Sachs had experienced dividend growth at 27.3% (8-years) and 28.3% (4-years). Based on this valuation model, we believe the company's growth will not slow down to growth levels of 11.362%, 6.626%, or 8.35%, which leads us to believe that the value of the stock should be higher than its current price. Thus, the company is undervalued.",
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      "text": "Using the above intrinsic values, we had to calculate PV's using different costs of capital under a series of growth rates. There are three K's that we had to calculate for intrinsic values. The final task was to find the growth rates which would produce a PV that matched the price of GS as of 04/30/2007 ($218.61). These values signify that if Goldman Sachs experiences post-2012 dividend growth of 11.362% using k1, 6.626% using k2, and 8.35% using k3, its value will be $425.43, $331.73, and $363.25 in 2012.",
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      "text": "Summary table of intrinsic value calculations matching current stock price.",
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      "text": "Table showing Est(IV2012) calculations for various growth rates and costs of capital.",
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