Instruction for Chegg Solver: Must be solved with word, Excel or convertible documents to pdf.

Q2: (Constant Growth for selling back)

Seven Star Company paid $ 4 of dividends this year. If its dividends are expected to grow at a rate of 10 percent per year, what is the intrinsic value for Seven Star common stock if the required rate of return is 8% and life of investment is 3 years and the market price expected after 3 years is $40.