Using the dividend discount model, calculate the intrinsic value for the stock today.

today is 2017, you have just been paid a dividend and that the next dividends will be received in exactly one year. (dividend is paid annually) the stock price at 2017 was$ 38.3. dividend pay per share is $1.39. you expect the stock to maintain the same dividend payout ratio(60.8399) as 2017 for the next three years. After three years, the company will increase the dividend payout ratio to 70%. Assume the company's return on new investment is 16.6% and the required rate of return is 10%.