Intrinsic Value Calculation Using Discounted Dividend Valuation

Delta Innovations, a mid-sized technology firm, has recently announced its latest dividend policy. The firm is expected to pay an annual dividend of $3.00 per share next year, followed by a 6% growth rate in dividends for the next five years. After that period, Delta anticipates that its shareholders will experience a lower dividend growth rate of 3% indefinitely due to market saturation.

Investors require a return of 12% on their investments in Delta Innovations. Based on the dividend discount model, what is the estimated intrinsic value per share of Delta Innovations?