One year from today, investors anticipate that Groningen Distillers Inc stock will pay a dividend of $3 25 per share After that, investors believe that the dividend will grow at 20 per year for three years before settling down to a long run growth rate of 4 The required rate of return on Groningen ...

Here is the series of expected dividends for the nex ...

One year from today, investors anticipate that Groningen Distillers Inc. stock will pay a dividend of $3.25

Question:

One year from today, investors anticipate that Groningen Distillers Inc. stock will pay a of $3.25 per share. After that, investors believe that the will grow at 20% per year for three years before settling down to a long-run growth rate of 4%. The required rate of return on Groningen stock is 15%. What is the current stock price?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...