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Sunrun Inc. is an American provider of residential solar panels and home batteries, headquartered in...

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Sunrun Inc. is an American provider of residential solar panels and home batteries, headquartered in San Francisco, California. When it is trading for $10.25, Fotis Binfield, a buy-side analyst covering Sunrun, forecasts that the current dividend of $0.14 will grow by 20 percent per year during the next 10 years. Thereafter, Fotis believes that the growth rate will decline to 8 percent and remain at that level indefinitely. Fotis estimates Sunrun's required return on equity (cost of equity) at 10%. What is the intrinsic value (i.e. price per share) of Sunrun based on the dividend discount model? 2.3 46.8 20.4 18.0

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