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An investor has examined Home Depot stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.38 $1.58 $1.59 $1.53
An investor has examined Home Depot stock and makes the following predictions for the future:
| YEAR | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| DIVIDEND | $1.38 | $1.58 | $1.59 | $1.53 |
The investor believes the selling price in four years will be $71.04. If the investor wants a 14.00% return to hold the stock, what intrinsic value does the investor put on Home Depot today?
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