#3 A stock just paid a dividend this morning of $1.39. Dividends are expected to grow at 12.09% for the next two years. After year 2, dividends are expected to grow at 7.86% for the following three years. At that point, dividends are expected to grow at a rate of 4.72% forever. If investors require a return of 13.07% to own the stock, what is its intrinsic value? Submit Answer format: Currency: Round to: 2 decimal places. Hide Hint #4 An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.99 $2.25 $3.12 The analyst notes that American Dream stock has a required return of 9.90%. The analyst projects that dividends will grow at a constant rate of 2.84% per year after year 3. What is the projected selling price for the stock at the end of year 3? Submit Answer format: Currency: Round to: 2 decimal places. Hide Hint