Question: Problem 3: Stock Valuation (20 points) Analysts think that Fingers Crossed Inc. will maintain a growth rate of 6% for the next 4 years and

Problem 3: Stock Valuation (20 points) Analysts think that Fingers Crossed Inc. will maintain a growth rate of 6% for the next 4 years and afterwards the growth rate will level off at 4% for the foreseeable future. a) If the last dividend paid was $1.5 and the required rate of return on Fingers Crossed equity is 10%, what would be the stock price today under analysts' expectations? (15 points)

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