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Pepsicos most recent dividend was $1. The dividend is expected to increase 10% for the next three years. After these three years of strong growth,
Pepsicos most recent dividend was $1. The dividend is expected to increase 10% for the next three years. After these three years of strong growth, the stock is then expected to grow at a constant 4% thereafter. Calculate the intrinsic value using the multi-stage dividend discount model. Pepsicos required rate of return is 8%. Give your answer to the nearest cent (i.e. two decimal places).
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