Amalgamated Aircraft Parts, Inc., is expected to pays a dividend of $1.50 in the coming year. The

Question:

Amalgamated Aircraft Parts, Inc., is expected to pays a of $1.50 in the coming year. The required rate of return is 16%, and dividends are expected to grow at 7% per year. Using the valuation model, find the intrinsic value of the company’s common shares.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...