KCB, Inc. just paid a $1.20 dividend, and analysts expect it to grow 150% in...
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KCB, Inc. just paid a $1.20 dividend, and analysts expect it to grow 150% in each of the next three years. The dividend growth rate is expected to be 4.0% annually after that. The required rate of return on KCB stock is 10.5%. a. What is the intrinsic value of KCB stock today? b. What would you expect the intrinsic value of KCB stock to be one year from today?
(SHOW ALL CALCULATIONS, NO EXCEL FUNCTIONS)
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