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Answer: Option 1
Present value of dividends which is expected to be provided in future is classified as an intrinsic value of stock. The intrinsic value of a stock, on the other hand, attempts to boil out the externals and value a company on its own merits. Internal factors like a firm's products, its management, and the strength of its brands in the marketplace determine intrinsic value. Investors are interested in cash available to stockholders.
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