Equity Investments Q247

247An analyst is attempting to value shares of Mitsubishi. Mitsubishi has just paid a dividend of $5 per share. Annual dividends are expected to grow at the rate of 6% per year over the next three years. At the end of three years, shares of Mitsubishi are expected to sell for $70. If the required rate of return is 10%, the intrinsic value of a share is closest to:

Option : B
Explanation :

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