What is the best estimate of stocks current intrinsic value

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Reference no: EM13972016

Paradise Retailers, Inc. just paid a dividend of $2.25. Analysts expect the company's dividend to grow by 40% this year, by 25% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on PRI's stock is 15.00%. What is the best estimate of the stock’s current intrinsic value? Note: Enter your answer rounded off to the nearest cent.

Reference no: EM13972016

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