Question: A stock currently pays a dividend of 0 90 per share
A stock currently pays a dividend of $0.90 per share. The company is expected to grow dividends 30% next year, 25% the following year, 20% the year after that and 15% the following year before dividend growth settles down to a long-term average rate of 4% per year. Estimate the intrinsic value per share if the required return on the stock is 8%.
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