Paper Help | Shares in Cochlear Ltd have been trading on the ASX

Shares in Cochlear Ltd have been trading on the ASX

Shares in Cochlear Ltd have been trading on the ASX Shares in Cochlear Ltd have been trading on the ASX for about 12 years. Over that time, the company has experienced a phenomenal growth rate in divided of about 25% p.a. This growth has been achieved by expanding into overseas market and, to a lesser extent, by new product development. You expected that growth in US sales will support the current growth in dividends for a further 5 years. After that time, you expected the dividend growth to slow to about 10% p.a. and the new growth rate to be maintained for the many years to come. Total dividend last year were 51 cents. The next dividend payment is due 6 months from now and dividends are paid semi-annually.RequiredWhat is the intrinsic value of a Cochlear share if your required rate of return is 16% p.a.?