AIKON ltd. is a new technology company. They recently announced their plan to invest in new operating system. As a result, no dividends will be paid for the next two years followed by an estimated dividend of $0.30 in the third year. They are expected to grow at 9% per year for the following four years followed by 7.5% per year for two years. After that the company is expected to grow at a stable rate of 5% per year.
What is the intrinsic value (per share) of the company if the market required rate of return is 11.5% p.a?