National thai restaurant chain-what is the intrinsic value

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Thai One On, a national Thai restaurant chain, expects to see a 25% annual increase in dividends over the next three years. After that, analysts expect dividends to fall to a constant growth rate of 5% thereafter. Thai One On $ last dividend paid was $1.40 per share. Also since there will be a few more Thai chains popping up shortly, investors see some risk and require a return of 12.5%. Based on this information, what is the intrinsic value (current price per share) of Thai One Ons stock?

Reference no: EM131578328

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