Assume a corporation comes out with a new product called the transporter. Because of start-up costs, the corporation does not plan on paying any dividends for the first 20 years. In the 21st year(D21) the dividend is expected to be $60 and will continue to grow thereafter at 10%. If the cost of capital for this corporation is 12%, what is the intrinsic value of this stock today? Hint: Find P20 and discount back to today.

1) less than $100

2) greater than $100 but less than $250

3) greater than $250 but less than $500

4) greater than $500