Question $6$

The current dividend of AnCab Inc. is $$4\mathrm{.}0$ and is expected to grow at $8\mathrm{.}0\%$ for six years.

After the first six years, the growth rate of the dividends is expected to grow at a constant

$3\mathrm{.}0\%$ into the future.

If the cost of equity is $5\mathrm{.}0\%,$ what is the value of the stock in Year $6$ and the intrinsic value of

its stock?

Lastly, if the current stock price of the company is $$260,$ should you buy?

$$326\mathrm{.}90$;$$270\mathrm{.}45$; Yes

$$237\mathrm{.}11$; $$303\mathrm{.}97$; Yes

$$333\mathrm{.}24$; $$259$; No