Assume that P/E ratios are computed using current price and expected earnings (rather than current earnings), and that all earnings and dividend values are annual values. (SHOW ALL CALCULATIONS, NO EXCEL FUNCTIONS)

3. KCB, Inc. just paid a $1.60 dividend, and analysts expect it to grow 80% in each of the next three years. The dividend growth rate is expected to be 4.5% annually after that. The required rate of return on KCB stock is 11.5%.4 pts a. What is the intrinsic value of KCB stock? b. You believe that the analysts' forecast about the dividend growth rate is too conservative, and that the dividend will grow 120% annually over the next four years, and then grow at 4.5% annually. What intrinsic value do you place on KCB stock