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2) (5 pts) You estimate Company B will pay a dividend of $1.50 per share next year and $2.00 per share in year 2 After
2) (5 pts) You estimate Company B will pay a dividend of $1.50 per share next year and $2.00 per share in year 2 After year 2 you assume the company will grow at a constant rate of 3%. The appropriate required rate of return is 9%. a) What is your estimate of the price of Company B's common stock in year 2 Price of Company B in 2 years b) What is your estimate of intrinsic value of Company B's common stock today? (Hint: don't forget to include the dividends paid in year I, year 2) Intrinsic Value today s
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