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Investment Company forecasts a $1.0 dividend for 2021, $1.1 dividend for 2022 and a $1.2 dividend for 2023 for Malibu Corporation. For year 2024 Investment
Investment Company forecasts a $1.0 dividend for 2021, $1.1 dividend for 2022 and a $1.2 dividend for 2023 for Malibu Corporation. For year 2024 Investment Company forecasts that Malibu will pay a $1.3 dividend and that dividend will continue to grow by 5% each year.
Using the dividend discount valuation model determine the intrinsic value of Malibu Corporation in 2020, assuming the company's cost of equity capital is 8%.
A. | $37.22 | |
B. | $25.12 | |
C. | $21.12 | |
D. | $27.87 |
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