7. Company XXXhas paid a dividend for many years. Its most recent annual dividend was $3.50, which was paid at the end of 2016. The risk-free rate is 2%, the current MRP is 6.8%, and the Beta for XXX is 1.7.You expect the dividends for the next 3years to be: 2017 = 3.80; 2018 = 4.20; 2019 = 4.80

Dividends after 2019 are expected to grow at an annual rate of 4%.

a) Calculate the value of the analysis period. Show every calculation. b)Calculate the value of the horizon period. Show every calculation. c) what is the intrinsic value of a share of XXX?