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Use the data below and the Two-stage Growth Model to find this company's intrinsic value. Forecast the dividends for t+1, t+2, and t+3. Then forecast
Use the data below and the Two-stage Growth Model to find this company's intrinsic value. Forecast the dividends for t+1, t+2, and t+3. Then forecast the present value of future dividends in t+2. (Remember that the dividend for t+3 is used only in this calculation.) Which table contains the correct answer?
Required return 0.150
Growth rate, t+1 0.053
Growth rate after t+1 0.072
Dividend t $2.00
Shares outstanding 10,000,000
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