What should be the intrinsic value

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Reference no: EM131994483

Katy Inc. is a fast growing firm and no dividend will be paid on the stock over the next 11 years. The company then will pay $12 dividend per share in year 12 and will increase the dividend by 5 percent forever. If the required rate of return for this stock is 11 %, what should be the intrinsic value of Katy Inc.? Show your work, only answer is not acceptable.

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Reference no: EM131994483

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