Question: A stock is not expected to pay a dividend over the next four years. Five years from now, the company anticipates that it will establish

A stock is not expected to pay a dividend over the next four years. Five years from now, the company anticipates that it will establish a dividend of $

1.00

per share

(

.

.,

5 =

1.00) .

Once the dividend is established, the market expects that the dividend will grow at a constant rate of

5

percent per year forever. The required rate of return on the company

s stock is expected to remain constant,

11 % .

What is the current stock price? please show work

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