Question: HarbaughiPants Go , is forecasting distributable cash flow ( avallable for dividends ) of $ 9 . 0 0 per share for the next year.

HarbaughiPants Go, is forecasting distributable cash flow (avallable for dividends) of $9.00 per share for the next year. Management believes that it could invest one-third of this amount on an expansion project with a 15% ROE. Your estimated market capitalization rate for the company is 12%. Using the constant-growth dividend discount model, what is the intrinsic value of Harbaugh Pants Co. stock, assuming management proceeds with the project. $42.86 $76.49 $128.57 $85.71

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