Dustin Co. pays a current (annual) dividend of $1 and is expected to grow at 6% for two years and the selling price of its stock is expected to be $13 and $16 respectively one and two years from now. If the required return for Dustin is 9%, what is the intrinsic value of its stock held for one year and two years respectively?

Answer rating: 100% (QA)

Intrinsic value of stock held for 1 year Dividend1growthRequire... View the full answer