What is pei intrinsic value

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Pollution Emmiters, Inc. (PEI) paid a $4.00 dividend to stock holders this year. The company has fallen on hard times, though and expects to decrease the dividend by 20% for the next two years until the company finds a new low emissions strategy that will increase sales. The dividend in years 3 and 4 are expected to remain flat; thereafter the company believes they can sustain a growth rate of 4.5%. Investors require a 12% return on PEI. What is PEI's intrinsic value?

Reference no: EM132392787

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