The stock price is of Kroger is $39.98

The cost of equity is 8.9%

Kroger's next year dividend is 0.21 per share

Kroger's constant growth rate is perpetuity is 1.8%

For the company KROGER!!!!

You must compute an intrinsic value of the stock using both valuation methods listed below: 1) Dividend growth model: constant dividend growth with an infinite horizon (below). Using the cost of equity you calculated in parti), compute an intrinsic value for the stock. Be sure to justify your assumed dividend growth rate (g). Div, X (1 + g) price, = r - 8