Solved: Find the best estimate of stocks current intrinsic value, Finance Basics

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Find the best estimate of stocks current intrinsic value

Question:

WWW Servers just paid a dividend of D0 = $1.00. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on WWW's stock is 9.00%. What is the best estimate of the stock's current intrinsic value?

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Finance Basics: Find the best estimate of stocks current intrinsic value

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