Compute the intrinsic value of stock

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Reference no: EM131940782

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 4 percent per year. An appropriate required return for the stock is 13 percent. Using the multistage DDM, compute the intrinsic value of the stock.

Reference no: EM131940782

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