Question: Working through some practice problems unsure if im doing this correctly A stock just paid a dividend of $0.50 per share. A perpetual dividend growth

Working through some practice problems unsure if im doing this correctly

A stock just paid a dividend of $0.50 per share. A perpetual dividend growth rate is expected to be 6% per year. Assume you require a 13% return. Compute the intrinsic value of this stock.

My calculations were 0.50/ (.13-.06) = $7.14

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