What is the intrinsic value of the common shares today

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Reference no: EM131322732

A company pays a $0.50 dividend. The dividend is expected to grow at a 20% rate for the next two years. Thereafter, over the subsequent three years, its growth should decline linearly, ultimately reaching a stable, mature growth rate of 5% per year. The company’s cost of common equity capital is 15%. What is the intrinsic value of the common shares today? ?

Reference no: EM131322732

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