Equity Investments Q246

0. Corporation XYZ has just paid a dividend of $2.57 per share. Dividends are expected to grow by 12% for the next two years and 8% the year after that. From the fourth year, the dividends are expected to grow at 6.2% indefinitely. What is the intrinsic value of the stock of XYZ if the required rate of return is 7.2%?

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