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Determine the intrinsic value of a company with the following characteristics: The most recently paid dividend was $1.00. The growth rate in dividends for the

Determine the intrinsic value of a company with the following characteristics: The most recently paid dividend was $1.00. The growth rate in dividends for the next three years is predicted at 9%, 11%, and 8%, respectively. The stocks of companies of similar risk are priced to earn 14%. After three years the company is predicted to have a dividend payout of 40% and a long-term ROE of 15%.

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