Chegg Study Order Confirmation | Chegg.com Ch. 18-Problems Problems Saved Help Save & Exit Submit Check my work Problem 18-17 The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 20 % per year for the next three years and then to level off to 5 % per year forever. You think the appropriate market capitalization rate is 15% per year a. What is your estimate of the intrinsic value of a share of the stock? (Use intermediate calculations rounded to 4 decimal places Round your answer to 2 decimal places.) ped nok Intrinsic value per share int ences b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places.) % Expected dividend yiold Check my work c. What do you expect its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places.) Expected price d-1. What is the implied capital gain? (Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places.) ces Implied Capital Gain % d-2. Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate? O Yes ONo 9 of 12 Next