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Westover Winds, which just paid a dividend of $2.10 per share, has a stock beta of 0.9.The company will increase its dividend by 8 percent

Westover Winds, which just paid a dividend of $2.10 per share, has a stock beta of 0.9.The company will increase its dividend by 8 percent next year. Then, it will reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. Assume that the risk-free rate is 2% and the market risk premium is 10%. Calculate the intrinsic value of this stock today. If the stock price is $25.0 todayWestover Winds, which just paid a dividend of $2.10 per share, has a stock beta of 0.9.The company will increase its dividend by 8 percent next year. Then, it will reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. Assume that the risk-free rate is 2% and the market risk premium is 10%. Calculate the intrinsic value of this stock today. If the stock price is $25.0 today

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