can anyone show me detailed steps please?

Correct Answer: 596.08 When you use the multi-stage growth model, make sure that you remember the steps. 1. You project the dividends up to the first year of constant growth period, 2. Discount the dividends during the supernormal growth period, 3. Use the Gordon Growth Model to discount the constant growth period dividends, 4. Discount the answer to Step 3 back to present (you will discount one less year from the first constant growth dividend is paid), 5. You add all the present values you found in Steps 2 and 4 , which is the value of the common stock. Russ Dress for More, a fast-growing clothier, just paid a dividend of \$1.64. Analysts project annual dividend growth to be 202 for the next 4 years, and then 5% thereafter. If investors' required rate of return is 8%, what should the price of the stock be? $96.08$97.72$41.40$30.47 FEEDBACK 0/1(0.0%) Correct Answer: $96.08 When you use the multi-stige growth model, make sure that you remember the steps. 1. You project the dividends up to the first year of constant growth period, 2. Discount the dividends during the supernormal growth period, 3. Use the Gordon Gtowth Model to discount the constant growth period dividends