The growth in dividends of ABC, Inc. is expected to be 15% p…

The growth in dividends of ABC, Inc. is expected to be 15% per year for the next three years, followed by a growth rate of 8% per year for two years. After this five-year period, the growth in dividends is expected to be 5% per year, indefinitely. The required rate of return on ABC, Inc. is 12%. The trailing twelve months of dividends per share were $2.00. What should the stock sell for today?

Low Fly Airline is expected to pay a dividend of $2.60 in th…

Low Fly Airline is expected to pay a dividend of $2.60 in the coming year. Dividends are expected to grow at the rate of 12% per year. The risk-free rate of return is 3%, and the expected return on the market portfolio is 11%. The stock of Low Fly Airline has a beta of 1.8. The intrinsic value of the stock is: