For the most recent year, ABC company paid an annual dividend of $1.00.  The company expects dividends to grow by 15% for the next two years, followed by 4 years of growth at 10% per year, before dropping to a perpetual growth rate of 4% starting in year 7.  The required return is 12%.  

Calculate the intrinsic value per share of ABC stock.

Answer rating: 100% (QA)

To calculate the intrinsic value per share of ABC stock we need to determine the present value of al... View the full answer