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Intrinsic value of ABC company stock

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This year ABC Company will pay a dividend on its stock of $6 per share. The following year the dividend is expected to be the same, increasing to $7 the year after. From that point on, the dividend is expected to grow at 4% per year indefinitely. Stocks with similar risk are currently priced to provide a 10% expected return. What is the intrinsic value of ABC company stock?

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This provides the steps to calculate the intrinsic value of ABC company stock.

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This year ABC Company will pay a dividend on its stock of $6 per share. The following year the ...

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