Problem:
Sunspots is planning on paying its first divident of $5.9 three years from today. After that, dividends are expected to grow at 6.4% per year indefinitely. Sunspots has a beta of 1. The market risk premium is 10%, and the risk free-rate is 3%.
Required:
Queostion: What is the intrinsic value of a share today?
Note: Please show how you came up with the solution.