In the text, we discussed using the discounted dividend model to estimate a stock's intrinsic value. To keep things as simple as possible, let's assume at first that XOM's dividend is expected to grow at a constant rate of 5% annually over time. So, g-5%. If so, the intrinsic value equals D₁/(r.-g), where D, is the expected annual dividend 1 year from now, r, is the stock's required rate of return, and g is the dividend's constant growth rate. Go back to the summary (overview) screen and find XOM's current dividend. Multiply this dividend by 1 + g to arrive at an estimate of D₁. a. Dividend Yield = 3.61% b. .0361(1+.05)= 0.037905 or 3.6905%