Paradise Tours, Inc. just paid a dividend of $5.95. Analysts expect the company's dividend to grow by 35% this year, by 20% in year 2, and at a constant rate of 6% in Year 3 and thereafter. The required rate of return on PTI's stock is 14.75%. What is the best estimate of the stock's current intrinsic value?  

Answer rating: 100% (QA)

Dividend just paid 595 Growth rate Year 1 35 Growth rate Year 2 20 Growth ra... View the full answer