4 points You expect XYZ Company stock to pay a dividend of $5.57 exactly one year from today and a dividend of $4.59 exactly two years from today. After the second dividend, future dividends will grow at a constant rate of 5% per year indefinitely. What is the stock's intrinsic value if XYZ's cost of equity capital is 14.7%? Round your answer to the nearest penny.
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PV1 = D1 / (1 + r)^1 PV1 = $5.57 / (1 + 0.147)^1 PV1 = $4.86 Show more…
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