Question: K Use the variable-growth model to predict the intrinsic value of the Rhyhorn Company common stock. Assume that dividends will grow at a variable

K Use the variable-growth model to predict the intrinsic value of the Rhyhorn Company common stock. Assume that dividends will grow at a variable rate for the next three years (2019, 2020, and 2021). After that, the annual rate of growth in dividends is expected to be 7% and stay there for the foreseeable future. Starting with the latest (2018) annual dividend of $2.14 per share, Rhyhorn's earnings and dividends are estimated to grow by 16% in 2019, by 13% in 2020, and by 9% in 2021021 before dropping to a 7% rate. Given the risk profile of the firm, assume a minimum required rate of return of at least 12%. a. Calculate the projected annual dividends over the years 2019, 2020, and 2021. b. Determine the present value of dividends during the initial variable-growth period. c. What do you believe the price of Rhyhorn stock will be at the end of the a. The projected annual dividend for 2019 is $ nearest cent.) (Round to the

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