The Nextra (NXT) Corporation is an electric utility who has paid a constant dividend of $3,00 per share for each of the last 3 years. Its earnings per share have similarly remained flat $8.50. The firm's earnings and dividends are expected to grow slowly for the next 3 years at 4% per year. Beginning in the year 4 NXT management expects its long term growth rate of dividend at be 2% NXT's expected return on equity is 5.25%

1. What is NXT current dividend payout ratio?

2 What is your estimate of NXT dividend per share at the end of year 3?

3. What is your estimate of NXT share price at the end of year 3?

4. what is your estimate of NXT current intrinsic value per share?

5. what is the present value of NXT growth opportunities (PVGO=?