The Rho Electronics Company has produced a new polymer adhesive substance, which will likely take a huge share of the market for the next three years until its competitors can manufacture and begin to sell something in the same class of products. Rho has a required rate of return of 12.5%. Please value the company if it has the following variable growth rates going forward:

Providing Excel formulas, calculate the intrinsic value of the Rho stock

(Please no hand written answers)

Year 1 Year 2 Year 3 Year 4 and thereafter growth rate 8% S2.00 $4.00 $5.00