Solving for the horizon value of a stock and finding the intrinsic value of a stock

Part 3 0f 5 - Stock Valuation The Board of Directors of Dart Engines, Inc. has decided that the company will start fpaying a dividend a year from today. Their plan is to issue an initial dividend of $0.85 per common share followed in the next year by a dividend of $1.30 per share. Because 0 mag'or capital expansion plans in e third year, no dividend will be issued, but dividend payments will resume a year later W'ith a $1.00 pier share dividend, followed a year later y a $1.10 per share dividend, after which the dividend growth rate will be stabilized at an annual rate of 4.0%. The discount rate for cash ow from dividends of Dart is 10.5%. Question 9 of 15 5 Points i Click to see additional instructions The horizon value (at year 5), and rounded to dollars and cents of Dart Engines common stock is $ per share. Question 10 of15 15 Points Click to see additional instructions The current intrinsic value rounded to dollars and cents of Dart Engine common stock is $ i per share. _,,,L . ,z