Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at a rate of 7% per year. An appropriate required return for the stock is 12%. Using the multistage DDM, compute the intrinsic value of the stock.



Answer :

Answer:

32

Explanation: