Investors require a return of 14.9% per year to hold a stock. The stocks last dividend was $2.25 per share and the dividends are expected to grow 30% per year for two years. Thereafter, the dividends are expected to grow at a constant rate of 7.5% per year. What is its intrinsic value per share?

Question 10 options:

1)

$52.16

2)

$47.24

3)

$51.17

4)

$50.88

5)

$44.73