Question: Wall Inc. forecasts that it will pay the dividends over the next five years. Year 1 Year 2 Year 3 Year 4 Year 5 Dividend

Wall Inc. forecasts that it will pay the dividends over the next five years. Year 1 Year 2 Year 3 Year 4 Year 5 Dividend $0.60 $0.80 $1.00 $1.20 $1.30 per share After year 5, Wall Inc. expects that their dividends will grow at a constant rate. Further, after year 5, they plan to have a constant retention rate of 60% and earn 10% on any new equity investments they make. You estimate that the cost of equity of Wall Inc. is 12%. Note: Do not round intermediate calculations. What is your best estimate for the intrinsic value of a share of Wall Inc. at t=0? $17.85 $17.04 $16.42 $15.68

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