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Show all work Musical Chipmunks Co. just paid a dividend of $2.75 per share. The analysts consensus is that its dividends will be increased by
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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%
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