What is the intrinsic value of indigos stock

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Reference no: EM131926724

Indigo Ink Supply paid a dividend of $5.5 last year on its common stock. It is expected that this dividend will grow at a rate of 8.5% for the next five years.

After that, the company will settle into a slower growth pattern and plans to pay dividends that will grow at a rate of 3.8% per year.

Investors require a return of 11.5% on the stock.

What will be the dividend paid out for the next six years?

What is the intrinsic value of Indigo's stock?

Reference no: EM131926724

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