P7-14 Common stock value: Variable growth Lawrence Industries' most recent annual

dividend was $1.80 per share (D0 = $1.80), and the firm's required return is 11%.

Find the market value of Lawrence's shares when:

a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5%

constant annual growth rate in years 4 to infinity.

b. Dividends are expected to grow at 8% annually for 3 years, followed by a 0%

constant annual growth rate in years 4 to infinity.

c. Dividends are expected to grow at 8% annually for 3 years, followed by a 10%

constant annual growth rate in years 4 to infinity.