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Please answer this question 17. Musical Chipmunks Co. just paid a dividend of $2.75 per share. The analysts' consensus is that its dividends will be

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17. Musical Chipmunks Co. just paid a dividend of $2.75 per share. The analysts' consensus is that its dividends will be increased by 4% next year. Dividends are expected to grow at the rate of 3% per year, forever, after that. Calculate Musical Chipmunks' dividends per share in years 1, 2 and 3. Also calculate the intrinsic value of a share of Musical Chipmunks Co. today. For this problem, assume a market capitalization rate (k) of 10%. [9 points + 9 points = 18 points]

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