1 AES is a utility company that recently paid a common stock dividend of $4.65 per share. Determine the current intrinsic value of a share of AES's common stock if its divided growth rate is expected to be $0.25/share per year for the next 5 years and then grow at 2.5 percent per year indefinitely. Its' equity cost of capital is 12 percent. Fill in all shaded cells. 2 marks Calculate the following: Dividend per share in year 5 Dividend per share in year 10 Final Calculated Intrinsic Share Value: 2 marks 2 marks 6 marks total Current Pribe = D1 N 2 Boyd Corp earned $5/share in its' most recent year of operations. The company has a consistent retention ratio of 60% with the remainder being paid out in dividends. The company has a guaranteed contract which will deliver earnings growth of 10% per year for the next 20 years. At the conclusion of the 20 year period, the demand for the Company's product will evaporate and the company will shut down. What is the current value of the company's shares given a required rate of return equal to 10% ? Fill in all shaded cells. Calculate the following: Dividend per share in year 5 PV of Dividends per share in year 5 Final Calculated Intrinsic Share Value: 2 marks 2 marks 2 marks 6 marks total 3 Briefly state a couple of issues that limit the use of the DDM for equity valuation 2 marks