18.

The last dividend paid by Yum! Brands, Inc. (YUM) was $1.88. Yum's annual dividend growth rate is expected to be 20 percent for 2 years.

after which dividends are expected to grow at a rate of 3 percent forever. Yum's required rate of return on equity discount ratel is &

percent. What is the current intrinsic value of Yum's common stock? If the stock market price is $60, what is your investment

recommendation (buy, hold or sell)? (Nonconstant growth model)