Calculate the intrinsic value using multistage model

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Communication Fiji limited just paid dividends of $2 per share. Assume that over the next three years dividends will grow as follows,5% next year, 15% in year 2, and 25% in year 3. After that growth is expected to level off to a constant growth rate of 10% per year. The required rate of return is 15%. Calculate the intrinsic value using multistage model.

Reference no: EM132525350

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