The Duo Growth Company just paid a dividend of $4.6 per share. The dividend is expected to grow at a rate of 19% per year for the next 3 years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 12% per year.

a.	What is your estimate of the intrinsic value of a share of the stock? (Omit the "$" sign in your response. 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 yield? (Omit the "%" sign in your response. Round your answer to 1 decimal place.)

Expected dividend yield

%

c.	What do you expect its price to be 1 year from now? Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate? (Omit the "$" & "%" signs in your response. Round your answers to 2 decimal places.)

Expected price	$
Capital gain	%