To Do a. Calculate the projected annual dividends over the years 2019, 2020, and 2021. b. Determine the present value of dividends during the initial variable-growth period. c. What do you believe the price of Rhyhorn stock will be at the end of the initial growth period (2021)? d. Having determined the expected future price of Rhyhorn stock in part c, discount the price of the stock back to its present value. e. Determine the total intrinsic value of Rhyhorn stock based on your previous calculations. Solution a. Calculate the projected annual dividends over the years 2019, 2020, and 2021. Growth Rate Year 2018 2019 2020 2021 18% 14% 9% Dividends $2.00 $2.36 $2.69 $2.93 b. Determine the present value (PV) of dividends during the initial variable-growth period. Rate of return 12% Present Value Year PV of future dividends c. What do you believe the price of Rhyhorn stock will be at the end of the initial growth period (2021)? 7% Growth rate after 2021 Stock value at the end of 2021 d. Having determined the expected future price of Rhyhorn stock in part c, discount the price of the stock back to its present value. PV of future stock value e. Determine the total intrinsic value of Rhyhorn stock based on your previous calculations. Intrinsic value of stock