Non$-$constant growth problem: the expected dividends in years $1,2$ and $3$ are $3,4$ and $5\mathrm{.}50.$ After that, it settles down to a constant growth rate of $6\mathrm{.}5\%.$ If you require a $7\%$ return, what would you pay for the stock today? 

Answer rating: 100% (QA)

To calculate the price you should pay for the stock today we will first calculate the present value ... View the full answer