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Algoos shares are currently selling at RM18.70 each and the company recently declared a dividend of RM0.80each. The dividend is expected to grow at 8%

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Algoos shares are currently selling at RM18.70 each and the company recently declared a dividend of RM0.80each. The dividend is expected to grow at 8% per year for the first three years and then at a more gradual rate of 6% a year indefinitely. Your expected rate of return is 12%. Calculate the intrinsic value or the stock today. (9 marks)

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