Assume you are interested in investing in company A. This company’s latest dividend was $1.75. The dividend is expected to be $2.10 next year, $2.95 in year 2, $3.5 in year 3 and $4.10 in year 4. You expect the dividends to grow at the constant rate of 5% afterward. If your required return is 12%, what is the value of this stock?

Answer rating: 100% (QA)

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