Question: please include all work Pepsico's most recent dividend was $1. The dividend next year is expected to increase 10%. The dividend is expected to continue
Pepsico's most recent dividend was $1. The dividend next year is expected to increase 10%. The dividend is expected to continue growing at 10% for two addition years after that. After these three years of strong growth, the stock is then expected to grow at a constant 4% thereafter. Calculate the intrinsic value using the multi-stage dividend discount model. Pepsico's required rate of return is 8%
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