A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $2.10 per share in two years. After they begin, the dividends are expected to grow forever at a constant rate of 6.7% per year. If investors require a return of 11.3% per year to hold the stock, what is the stocks intrinsic value per share?

Question 25 options:

1)

$45.66

2)

$43.13

3)

$36.85

4)

$41.02

5)

$31.93