You have a required rate of return of 15.25%. You are evaluating a stock that...
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You have a required rate of return of 15.25%. You are evaluating a stock that generated $842M of earnings, while paying out 20% as dividends last year. The company currently has a book value of $5.61B and a market cap of $8.24B. The company indicates it has fewer profitable project to invest in and well increase the payout to 40% after two more years, and then will permanently increase the payout to 80% after another three years. Assuming the company can maintain its ROE, estimate the intrinsic value of the stock.
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