Question: Analysts project that the stock will pay a $4 dividend per share one year from now and a $5.00 dividend per share two years from

Analysts project that the stock will pay a $4 dividend per share one year from now and a $5.00 dividend per share two years from now. Beginning three years from now, the dividend per share will grow 5 percent per year. The required rate of return on equity is 11 percent. Estimate the price of lotus stock.

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