Intrinsic Value Calculation Using DDM

Sarah is analyzing the stock of a technology company, Tech Innovations Inc., which has been paying dividends for the last decade. She expects the upcoming dividend to be $2.50 per share, with a projected constant growth rate of 6% per year. Sarah wants to calculate the intrinsic value of the stock using the Gordon Growth Model, which requires her to determine the appropriate discount rate. After reviewing market data, she estimates the required rate of return for similar companies in the technology sector to be 10%. What is the intrinsic value of Tech Innovations Inc.'s stock using the Dividend Discount Model (DDM)?