An investor has examined Home Depot stock and makes the following predictions for the future:
YEAR | 1 | 2 | 3 | 4 |
DIVIDEND |
$1.44 |
$1.59 |
$1.58 |
$1.50 |
The investor believes the selling price in four years will be $77.09. If the investor wants a 14.00% return to hold the stock, what intrinsic value does the investor put on Home Depot today?