Question: Enabled: Final for FIN 331 i Saved Help Save Indigo Ink Supply paid a dividend of $5 last year on its common stock. It

Enabled: Final for FIN 331 i Saved Help Save Indigo Ink Supply

Enabled: Final for FIN 331 i Saved Help Save Indigo Ink Supply paid a dividend of $5 last year on its common stock. It is expected that this dividend will grow at rate of 8.5% for the next five years. After that, the company will settle into a slower growth pattern and plans to pay dividends that will grow at a rate of 3.8% per year. Investors require a return of 11.5% on the stock. a. What will be the dividend paid out for the next six years? (Round your answers to 4 decimal places.) D1 = D2 = D3 = D4 = D5 = D6 = b. What is the intrinsic value of Indigo's stock? (Round your answer to 2 decimal places.) Intrinsic value

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