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You are valuing a company undergoing major change, as a result, you have a high...

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Finance

You are valuing a company undergoing major change, as a result, you have a high required rate of return of 18.8%. Last year, the company generated earnings of $2.4B and with a robust ROE of 14% was able to grow dividends by 5%. However, you believe the company will be dealing with fierce competition for the next several years and will generate negative growth of -4%, -12%, and -15%. Thereafter, you believe the company will be rightsized and at which point you believe the company will payout all of its earnings. Estimate the intrsinic value of the stock.

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