Required rate of return for both companies = 15%
For company D:
Dividend next year =$6
Growth rate =0
Intrinsic Value = 6 / (0.15 -0) = $40
For company G:
Dividend next year =$2
Growth rate =8.33%
Intrinsic Value = 2/ (0.15 – 0.0833) = $29.98
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