Global Innovations Ltd. is a high-tech firm that has historically increased its dividend payments at a rate of 8% annually. Currently, it is expected to pay a dividend of $5.00 per share next year. Market analysts suggest that due to the potential volatility in the tech sector, the required rate of return for investors is 12%.
Your task is to determine the intrinsic value of the stock using the Discounted Dividend Valuation model, specifically applying the Gordon Growth Model. What is the intrinsic value of Global Innovations Ltd.?