Note that 1) Please draw a timeline with cash flow information so that you can see a big picture; 2) price luded in your calculation on your right-hand side equation. Lecture 5: Stock Valuation/ Stock Values The Starr Co. just paid a dividend of $1.95 (i.e., Do) per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require a return of 11 percent on the stock, what is the current price? What will the price be in three years? In 15 years? 1