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Calculate the intrinsic value for the common stock

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Reference no: EM132806859

Suppose a common stock currently pays dividends of $6.00 per share. You forecast the dividend per share to grow at 6.0% per year for the next 4 years, followed by 3.0% per year growth forever.

Problem 1: Required (expected) stockholders rate of return is 11.0%. Calculate the intrinsic value for this common stock. Show all work.

Reference no: EM132806859

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