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Julia Saunders is your boss and the treasurer of Foster Carter Enterprises (FCE). She asked you to help her estimate the intrinsic value of the

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Julia Saunders is your boss and the treasurer of Foster Carter Enterprises (FCE). She asked you to help her estimate the intrinsic value of the company's stock. FCE just paid a dividend of $1.00, and the stock now sells for $15.00 per share Julia asked a number of security analysts what they believe FCE's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5% per year in Year 4 and thereafter. Julia asked you to use that information to estimate the required rate of return on the stock, r, and she provided you with the following template for use in the analysis: 10.00% (must be changed to force Calculated Price to equal the Actual Market Price S15.00 Estimated r, Year Dividend growth rate (insert correct values) Calculated dividends (D, has been paid) TVP DJ(r,-g). Find Total CFs PVs of CFs when discounted at Estimated r 10% 10% 10% 5% $1.00 A positive aumber will be here when dividends are estimated. The Calculated Price will equal the Actual Market Price once the Julia Saunders is your boss and the treasurer of Foster Carter Enterprises (FCE). She asked you to help her estimate the intrinsic value of the company's stock. FCE just paid a dividend of $1.00, and the stock now sells for $15.00 per share Julia asked a number of security analysts what they believe FCE's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5% per year in Year 4 and thereafter. Julia asked you to use that information to estimate the required rate of return on the stock, r, and she provided you with the following template for use in the analysis: 10.00% (must be changed to force Calculated Price to equal the Actual Market Price S15.00 Estimated r, Year Dividend growth rate (insert correct values) Calculated dividends (D, has been paid) TVP DJ(r,-g). Find Total CFs PVs of CFs when discounted at Estimated r 10% 10% 10% 5% $1.00 A positive aumber will be here when dividends are estimated. The Calculated Price will equal the Actual Market Price once the

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