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PROMISE I WILL LIKE...NEED ASAP ( 10 Marks ) Stock Two-DGC Co. is in a consolidation industry: The DGC company just paid a dividend of

PROMISE I WILL LIKE...NEED ASAP

(10 Marks) Stock Two-DGC Co. is in a consolidation industry: The DGC company just paid a dividend of $1 per share. The dividend is expected to grow at a rate of 20% per year for the next 2 years, and then to level off to 5% per year forever. Analysts predict that the expected rate of return for the company stock is 20% per year. What is the intrinsic value of a share of the stock?

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