An investor has examined ABC stock and makes the following predictions for the future:

YEAR

$1$

$2$

$3$

$4$

Dividends

$$1\mathrm{.}25$

$$1\mathrm{.}50$

$$1\mathrm{.}50$

$$1\mathrm{.}50$

Selling Price

$$75\mathrm{.}00$

If the investor wants a $14\%$ return to hold the stock, what intrinsic value does the investor put on ABC today?

An investor has examined ABC stock and makes the following predictions for the future:

YEAR

$1$

$2$

$3$

$4$

Dividends

$$1\mathrm{.}25$

$$1\mathrm{.}50$

$$1\mathrm{.}50$

$$1\mathrm{.}50$

Selling Price

$$75\mathrm{.}00$

If the investor wants a $14\%$ return to hold the stock, what intrinsic value does the investor put on ABC today?

$$48\mathrm{.}56$

$$53\mathrm{.}83$

$$51\mathrm{.}92$

None are correct