Sally Johnson, an analyst covering telecom stocks, is attempting to estimate the intrinsic value of Windstream...

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Sally Johnson, an analyst covering telecom stocks, is attemptingto estimate the intrinsic value of Windstream (WIN) using thedividend discount model. She collects the following relevant data:The most recent annual dividend per share was $2.5 The applicablediscount rate is 8.7% Johnson values the stock using a three-stageDDM, assuming growth rates of 11% for years 1-3, then 6.7% foryears 4 and 5, and then 4.1% starting in year 6 into perpetuity.Based on Johnson's assumptions, what is the per-share value of WINstock?

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Sally Johnson, an analyst covering telecom stocks, is attemptingto estimate the intrinsic value of Windstream (WIN) using thedividend discount model. She collects the following relevant data:The most recent annual dividend per share was $2.5 The applicablediscount rate is 8.7% Johnson values the stock using a three-stageDDM, assuming growth rates of 11% for years 1-3, then 6.7% foryears 4 and 5, and then 4.1% starting in year 6 into perpetuity.Based on Johnson's assumptions, what is the per-share value of WINstock?