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For the following questions, we will use Costco Wholesale Corporation ( COST ) as our subject company. The forward dividend ( D 1 ) is

For the following questions, we will use Costco Wholesale Corporation (COST) as our subject company.
The forward dividend (D1) is 4.08. The current price (P0) is 558.05. The P/E ratio is 39.47 with an EPS of 14.14.
Assume the required return is 10%.2. Assume the COSTs dividends will grow at 10% for the three years following the next dividend, and then switch to a constant growth rate of 4%. What is the intrinsic value of COST under these assumptions?

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