KCB, Inc. just paid a $1.60 dividend, and analysts expect it to grow 80% in each of the next three years. The dividend growth rate is expected to be 4.5% annually after that. The required rate of return on KCB stock is 11.5%. a. What is the intrinsic value of KCB stock? b. You believe that the analysts forecast about the dividend growth rate is too conservative, and that the dividend will grow 120% annually over the next four years, and then grow at 4.5% annually. What intrinsic value do you place on KCB stock?

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