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Up until 2021, Kraft Heinz Company had been paying dividends. Assume that KHC is expected...

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Accounting

Up until 2021, Kraft Heinz Company had been paying dividends. Assume that KHC is expected to pay $1.60 dividend per share annually for two fiscal years, then $1.80 for FY2024 and $2.00 for FY2025. The dividend payout for FY2026 is $2.20 and is expected to grow at a rate of 2% per year thereafter. The cost of equity capital is 7%. Please estimate the intrinsic value of Kraft Heinz Company using Dividend Discount Model.

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