We assume the growth rate in corporate earnings and dividends is the same as the growth rate in GDP. Country As stock market has a required real return of 10%, a current dividend of $12, current higher growth rate of GDP of 11%. Over the next 20 years, the countrys GDP growth rate will lineally decline, and it has a long-term sustainable rate of GDP growth rate of 2.5%, with the assume risk free asset return of 0.4%. Estimate the intrinsic value of the stock market index.

a.$300

b.$200

c.$150

d.None of the above