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Francis Inc.'s stock has a required rate of return of 10%. Next years dividend is expected to be $3.50 (D1). The dividend is expected to

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Francis Inc.'s stock has a required rate of return of 10%. Next years dividend is expected to be $3.50 (D1). The dividend is expected to grow at a constant rate of 6.00% per year. What is the intrinsic stock price today (Po)? Hint: Like homework 9-2, leverage Gordons constant growth formula: Po = D1 / (r-g) $80.00 $92.75 $87.50 $85.00 $82.55

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