A company’s earnings are expected to grow at 13% per year for the next three years, then stabilize at a 7% growth rate from then on. The company’s most recent dividend was $1.04. If the required return for an investment of this type is 16%, what is the intrinsic value for this share of stock? (What is its price?)

A company’s earnings are expected to grow at 13% per year for the next three years, then stabilize at a 7% growth rate from then on. The company’s most recent dividend was $1.04. If the required return for an investment of this type is 16%, what is the intrinsic value for this share of stock? (What is its price?)

A company’s earnings are expected to grow at 13% per year for the next three years, then stabilize at a 7% growth rate from then on. The company’s most recent dividend was $1.04. If the required return for an investment of this type is 16%, what is the intrinsic value for this share of stock? (What is its price?)