You are analyzing a stock. The stock's most recent dividend paid was $2.6 per share. You expect that the stock dividends will grow at 11% for the next 3 years (until t = 3), followed by a long-term stable growth rate of 1.6% per year. The required rate of return on the stock is 6%. What is the intrinsic value of the stock? Note: Round your final answer to 2 or more decimal places. Do not write any symbols like $.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are analyzing a stock. The stock's most recent dividend paid was $2.6 per share. You expect that the stock dividends will grow at 11% for the next 3 years (until t = 3), followed by a long-term stable growth rate of 1.6% per year. The required rate of return on the stock is 6%. What is the intrinsic value of the stock?

Note: Round your final answer to 2 or more decimal places. Do not write any symbols like $.

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