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An analyst is attempting to value shares of the Dominion Company. The company recently paid a Dividend of $0.58/share (DO-$0.58). Dividends are expected to grow

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An analyst is attempting to value shares of the Dominion Company. The company recently paid a Dividend of $0.58/share (DO-$0.58). Dividends are expected to grow by 20% next year and 15% the year after that. From the third year onward, Dividends are expected to grow at 5.6% per year indefenitely Using the Dividend Discount Model, calculate the intrinsic value of Dominion Company stock. (Show all your work for partial credit) Use the below information to compute the Required Return on Equity: Risk-Free Rate 4%; Stock beta .883 Annual Return of Equity Market 9%

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