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Amrin Pharmaceuticals is currently paying a dividend (d0) of $1.20. This dividend is expected to grow at the rate of 30 percent a year for
Amrin Pharmaceuticals is currently paying a dividend (d0) of $1.20. This dividend is expected to grow at the rate of 30 percent a year for the next five years, followed by a growth rate of 20 percent a year for the next five years after. After 10 years, the dividend is expected to grow at the rate of 6 percent a year. The required rate of return (k) on this stock is 21 percent. Calculate the intrinsic value of a share of Amrin Pharmaceuticals today
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