Calculate the the share intrinsic value for today

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It is predicted that the share in a firm would not pay out dividends for the upcoming three years. But, it would pay out a $2.00 dividend in year four and after that the dividend is predicted to rise at a constant rate of five per cent starting in year five.

If required rate of return is 10%, calculate the the share's intrinsic value for today.

Reference no: EM132703491

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