Question: Help me understand how to get the correct answer. A company is expected to pay a dividend at the end of the year of $4.00.

Help me understand how to get the correct answer.

A company is expected to pay a dividend at the end of the year of $4.00. The dividend is expected to grow at 4% per year. The stock's cost of equity is 6.5%. What is the intrinsic value of this stock?

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