Deployment specialists pays current dividend

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1. Deployment Specialists pays a current (annual) dividend of $1.00 and is expected to grow at 20% for 2 years and then at 4% thereafter. If the required return for Deployment Specialists is 8.5%, what is the intrinsic value of Deployment Specialists stock? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)   

Intrinsic value ................... $

2. Based on the work of Adam Smith, economic theory indicates that the pursuit of self-interest and profit maximization leads to the most efficient allocation and use of resources. is this true?

Reference no: EM131349239

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