A stock’s next dividend is expected to be $0.56 per share and the dividends are expected to grow forever at a constant rate. Investors require a return of 9.6% per year to hold the stock. What is the stock’s intrinsic value per share expected to be in three years, if the stock’s current intrinsic value is $14.56 per share?
1) $18.47
2) $15.47
3) $14.98
4) $16.87
5) $17.22