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Nina, a lead fundamental analyst was trying to calculate the intrinsic value of X Co. stock. X Co. just paid a dividend of $5. The

Nina, a lead fundamental analyst was trying to calculate the intrinsic value of X Co. stock. X Co. just paid a dividend of $5. The dividend is expected to grow at 10% p.a. for next 3 years, then (from 4th year onwards) it will grow at 4% p.a in perpetuity. What is the intrinsic value of the X Co. stock? The discount rate is 12% p.a. compounded semi-annually.

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