Example: Applying the Gordon Growth Model An analyst obtained the following information regarding Global Shipping Inc.: Current share price =$28 Recent dividend per share =$1.95 Earnings per share =$4.25 Return on equity =25% Required rate of return =20% Use the Gordon growth model to estimate Global Shipping's intrinsic value. The question requires 4 answers. Use two decimal places! 1. First, calculate the retention rate Input the answer as a percentage with two decimal places. No need to include the percent sign. Example, 99.98 2. Second, calculate the growth rate Input the answer as a percentage with two flecimal places. No need to include the percent sign. Example, 99.98 3. Third, what is the intrinsic value Input the answer as a dollar and cents amount for the share price. No need to include the dollar sign. Example, 99.98