What is intrinsic value per share of nflx stock


Problem

NFLX (NFLX) is currently paying no dividends and is not expected to pay a dividend for several years. An equity analyst determines that the company's prospects suggest that NFLX will start paying a dividend of $4.1 per share eight years from now (Year 8), and the dividend is expected to grow at 5.1% thereafter. The analyst estimates the required return for investing in NFLX stock at 11.27%. Based on these assumptions, what is the intrinsic value per share of NFLX stock?

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