JX VALUATION B D E STOCK VALUATION 2 Wenling Co. has just paid a dividend of $2 per share. An experienced analyst believes that the growth rate of Wenling's dividend 3 for the growth rate will be 2 % annually. The cost of equity is 9 % . 4 S Questions: 6 1.What is the intrinsic value today of one share of Wenling's stock? (Use dividend discount model) 7 8 2 Create a data table that shows the intrinsic value of Wenling's stock will change if the growth rate ranges between 0 % and 10 and the cost of equity ranges between 5 % and 20 % , in 1 % increments. (Note n.a. for instrinsic value when growth rate is larger than the cost of equity) % , in 1 % increments 9 10 11 12 3. Create the line chart for present values of Wenling Co common stock as more dividends are included 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29