The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 21% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 16% per year.

a. What is your estimate of the intrinsic value of a share of the stock? (Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places.)

Intrinsic value per share b. If the market price of a share is equal to this Intrinsic value, what is the expected dividend yleld? (Use intermediate values rounded to 2 declmal places. Round your answer to 4 declmal places.) Expected dividend yield c. What do you expect Its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 declmal places.) Expected price d-1. What Is the Implied capital gain? (Use intermediate values rounded to 2 decI mal places. Round your answer to 4 declmal places.) Implied Capital Gain % d-2. Is the Implied capital galn consistent with your estimate of the dividend yleld and the market capltalization rate? Yes O No Intrinsic value per share b. If the market price of a share is equal to this Intrinsic value, what is the expected dividend yleld? (Use intermediate values rounded to 2 declmal places. Round your answer to 4 declmal places.) Expected dividend yield c. What do you expect Its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 declmal places.) Expected price d-1. What Is the Implied capital gain? (Use intermediate values rounded to 2 decI mal places. Round your answer to 4 declmal places.) Implied Capital Gain % d-2. Is the Implied capital galn consistent with your estimate of the dividend yleld and the market capltalization rate? Yes O No