Determine the intrinsic value of xyz stock

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Problem 1: Company XYZ just paid a $1.60 dividends. Dividends are expected to grow at 40% for 2 years, then at 15% for another 2 years. The dividend growth rate settles at 4% thereafter. If the interest rate is 20% during the high-growth rate period and 10% during the stable-growth rate period, find the intrinsic value of XYZ stock. Make sure to round your answers to the nearest 100th decimal points.

Reference no: EM132763750

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