Question: Corvid Creameries has committed to increasing its dividends yearly. They expects to pay dividends of $0.5, $1, and $1.5 at the end of the next

Corvid Creameries has committed to increasing its dividends yearly. They expects to pay dividends of $0.5, $1, and $1.5 at the end of the next three years until they reach a stable yearly dividend of $2.

What is the value of the equity according to the dividend growth model? Assume an annual rate of 6%.

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