Consider the following scenario: The last dividend the company paid was $D_0=$$$1.$ The rate of growth in both earnings and dividends during the

$3-$year nonconstant growth period is $g_s=12\%,$ the normal growth rate after the nonconstant period, i$.$e$.,$ starting at the end of year three and in

the future is $g_n=4\%,$ and the required $($minimum acceptable$)$ rate of return on the stock is $r_s=11\%.$

What is the formula for the stock's intrinsic value in this case?

widehat$(P_0)=\frac{D_1}{(1+r_s{)}^1}+\frac{D_2}{(1+r_s{)}^2}+\frac{D_3}{(1+r_s{)}^3}+\frac{(widehat(P_3))}{(1+r_s{)}^4}$

widehat$(P_0)=\frac{D_0}{(1+r_s{)}^1}+\frac{D_1}{(1+r_s{)}^2}+\frac{D_2}{(1+r_s{)}^3}+\frac{D_3}{(1+r_s{)}^4}+\frac{(widehat(P_4))}{(1+r_s{)}^4}$

widehat$(P_0)=\frac{D_0}{(1+r_s{)}^1}+\frac{D_1}{(1+r_s{)}^2}+\frac{D_2}{(1+r_s{)}^3}+\frac{D_3}{(1+r_s{)}^4}+\frac{(widehat(P_3))}{(1+r_s{)}^4}$

widehat$(P_0)=\frac{D_1}{(1+r_s{)}^1}+\frac{D_2}{(1+r_s{)}^2}+\frac{D_3}{(1+r_s{)}^3}+\frac{(widehat(P_3))}{(1+r_s{)}^3}$