The common stock of Chevron Corporation (CVX:NYSE), one of the largest firms in the world is currently poised for great growth with new product innovations and a digital sales platform. CVX currently trades on the NYSE market for $160.95 per share and seems to be overvalued by the market. It is known as an income stock, or offering consistent dividends to investors. The firm paid a $1.34 dividend per share this (T=0) year. Following this years dividend, please calculate next years dividend. The firm expects the dividends to grow at a rate of 6.00% per year thereafter (three year growth rate of dividends). The assumed required rate of return (discount rate) for this firms common stock is 7.50%.

1. While using the Gordon Growth Model (Constant Dividend Growth Model) for valuating of Chevrons common stock, what is the next years expected dividend, given the annual dividend growth rate, and the most recent dividend per share (the dividend already paid)?

2. What would the intrinsic/fair or calculated value of Chevron Corporations common stock, or P₀, on a per share basis (using the Gordon Growth Model where dividends growth at a constant rate)?

Please show formula not excel