**Estimating Intrinsic Share Value Using Dividend Discount Model**

Mattel, Inc. is expected to pay a $1.48 dividend per share annually. Estimate its intrinsic value per common share using the dividend discount model (DDM) under each of the following separate assumptions.

(Assume that Mattelâ€™s cost of equity capital is 8.0%.)

Required

**The $1.48 dividend per share occurs at the end of each of the next three years, after which there are no additional dividend payments.**

Round answer to two decimal places.

$Answer = 3.81

**The $1.48 dividend per share occurs at the end of each year in perpetuity.**

Round answers to two decimal places, if applicable.

$Answer = 18.5

**The $1.48 dividend per share occurs at the end of each of the next three years, after which the dividends increase at a rate of 4% per year.**

Round answers to two decimal places.

$Answer = 34.36