Intrinsic Value Calculation using the Gordon Growth Model

Tech Giants Inc. is projected to pay a dividend of $4.00 per share next year. The company has a history of maintaining a stable growth rate of dividends at 7% annually. Investors require a return of 10% on their investments in Tech Giants Inc. Given this information, calculate the intrinsic value of the stock using the Gordon Growth Model.

According to the Gordon Growth Model, the intrinsic value (P) of a stock is calculated as:

P = D / (r - g)

where D is the expected dividend next year, r is the required rate of return, and g is the growth rate of dividends.