Question: Problem 8 - 1 8 Variable Growth ( LG 8 - 6 ) A fast - growing firm recently paid a dividend of $ 0

Problem 8-18 Variable Growth (LG8-6)
A fast-growing firm recently paid a dividend of $0.60 per share. The dividend is expected to increase at a 20 percent rate for the next three years. Afterwards, a more stable 10 percent growth rate can be assumed.
If an 11 percent discount rate is appropriate for this stock, what is its value today?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Stock value
Problem 8-18 Variable Growth (LG8-6) A fast-growing firm recently paid a

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