Dividends are expected to grow forever at constant rate

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Reference no: EM131602277

A stock’s next dividend is expected to be $0.56 per share and the dividends are expected to grow forever at a constant rate. Investors require a return of 9.6% per year to hold the stock. What is the stock’s intrinsic value per share expected to be in three years, if the stock’s current intrinsic value is $14.56 per share?

1) $18.47

2) $15.47

3) $14.98

4) $16.87

5) $17.22

Reference no: EM131602277

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