What is intrinsic value of stock

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Reference no: EM131583430

X Ltd recently paid an annual dividend on its stock of Shs.2 per share. The divided is expected to grow at Shs.l per share for the next four years. Thereafter the dividend is expected to grow at 5 % per year indefinitely. The required rate of return on stocks with similar risk is 12%. What is the intrinsic value of X Ltd.’s stock?

Reference no: EM131583430

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