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Beranek Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.50 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. The forecast of the future dividend stream, along with the forecasted growth rates, is shown below. With a required return of 11.00%, what is the current intrinsic value?
Environmental Factor
An external element that can influence the performance and outcomes of an organization, including economic, social, technological, political, and natural conditions.
Legislation
A body of laws and regulations enacted by a government or legislative authority to regulate, authorize, sanction, grant, declare, or restrict.
Environmental Factor
An external influence that affects an organization’s operations, including economic, legal, technological, and competitive elements.
Technology
The application of scientific knowledge for practical purposes, especially in industry and in our daily lives, through the use of tools, machines, systems, and processes.
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