What is the current intrinsic value of the stock

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Problem 1: All You Can Eat Pizza Corporation is growing quickly. Dividends are expected to grow at a 21 percent rate for the next 4 years, with the growth rate declining to a constant 2 percent thereafter. The required return is 10 percent and the company just paid a $5.10 annual dividend. What is the current intrinsic value of the stock?

A. $108.96
B. $121.24
C. $165.42
D. $198.87
E. $224.20

Reference no: EM132808234

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