Intrinsic Value Calculation for XYZ Corp

XYZ Corp is a mature company that has consistently paid a dividend over the past 10 years. The company is currently trading at $50 per share, and the last dividend paid was $2 per share. Analysts expect the company to grow its dividends at a rate of 5% per year for the foreseeable future. As a financial analyst, you are tasked with determining the intrinsic value of XYZ Corp using the Gordon Growth Model (Dividend Discount Model).

According to this model, the formula to calculate the present value of expected future dividends is:

P = D / (r - g)

Where:

P = Price of the stock

D = Dividends expected next year

r = Discount rate

g = Growth rate of dividends

If the appropriate discount rate for XYZ Corp is estimated at 10%, what is the intrinsic value of XYZ Corp based on the Dividend Discount Model?