Company valuation. Your first task as an intern at an investment bank would be to value a mature business based on the following dividend forecasts: The company is expected to pay out $4.5 as dividends next year. For the following 4 years, the dividends are expected to increase by 5% a year. However, starting from year 6 dividends are expected to decline by 4% a year forever. Your task is to estimate the value of a share based on these forecasts, assuming that the required rate of return from such investments is generally 8%.