ABC currently pays no dividends.  Today, the firm announced that it will pay its first dividend of $1 per share in four years, then $1.70 in each of the following three years, and the subsequent dividends are expected to grow at a constant rate of 5 percent per year.  

What is the stock price today if the discount rate is 10%?

Answer rating: 100% (QA)

To calculate the stock price today we need to find the present value of all the future dividends and ... View the full answer