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Investment Company forecasts a $1.0 dividend for 2021, $1.1 dividend for 2022 and a $1.2 dividend...

Investment Company forecasts a $1.0 dividend for 2021, $1.1 dividend for 2022 and a $1.2 dividend for 2023 for Malibu Corporation. For year 2024 Investment Company forecasts that Malibu will pay a $1.3 dividend and that dividend will continue to grow by 5% each year.


Using the dividend discount valuation model determine the intrinsic value of Malibu Corporation in 2020, assuming the company's cost of equity capital is 8%.

A.

$37.22
B.

$25.12
C.

$21.12
D.

$27.87
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