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Jumbo Shrimp Oxymorons, Inc. recently paid a dividend of $2.12 per share. The firm expects explosive growth of 20% over the next two years. After
Jumbo Shrimp Oxymorons, Inc. recently paid a dividend of $2.12 per share. The firm expects explosive growth of 20% over the next two years. After that the firm's managers expect that growth will drop to 14% for the following three years, then settle at 8% indefinitely. If investors require a rate of return of 15.40% on Jumbo's stock: a. What will be the dividend paid out for the next six years? (Round your answers to 4 decimal places.) Answer is complete but not entirely correct. D1 = D2 = D3 = D4 = D5 = D6 = $ $ $ $ $ $ 2.5540 3.0528 3.1409 3.5806 4.0819 3.3642 X b. What is its intrinsic value today? (Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value 43.46
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