What is the intrinsic value of a stock which last paid a dividend of $$3\mathrm{.}25$ and is expected to grow at $17\%$ over the next $2$ years after which it will settle down at a stable rate of $8\%$ per annum? The investor$$s required rate of return is $12\mathrm{.}5\%.$

Question $18$Answer

a$.$

$$48\mathrm{.}56$

b$.$

$$91\mathrm{.}26$

c$.$

$$115\mathrm{.}03$

d$.$

$$84\mathrm{.}37$