What is the intrinsic value of the share

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Suppose Anele Mguni's firm is expected to pay high dividends during the first 3 years of its formation during which time the expected growth rate in dividends will be 30%. After this period, the firm is expected to reduce the dividend pay-out ratio, resulting in the expected dividend growth rate falling to 8%. The required rate of return for the company's share is 13.4% and a dividend of $1.15 has just been paid.

What is the intrinsic value of the share? (Show step by step calculation)

Reference no: EM133072844

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