You want to invest in a stock that will pay $1, $1.5, and $1.75 in dividends in the next 3 years. You expect the stock to pay a $2 dividend in year 4, and then expect it to grow annually by 1%. Your required rate of return is 5%. Given that the stock is currently trading at $45, should you invest in this stock? No, as the stock price is higher than its intrinsic value of $43.19 No, as the dividend growth slows down over time Yes, as the stock price is lower than its intrinsic value of $50.00 Yes, as the stock price is lower than its intrinsic value of $47.02 No, as the NPV of the transaction to you is - $3.45