Torsion Corporation will pay a dividend of $$2$ next year. After this payment, the dividends will increase at a rate of $2\%$ for $2$ years, $3\%$ for one year, and $4\%$ in perpetuity afterward. If the required rate of return is $10\%,$ what should the price of Torsion stock be today based on the discounted dividend model? Round intermediate calculations to $4$ decimal points, and the final answer to $2$ decimal points.

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To calculate the price of Torsion stock today based on the discounted dividend model we need to calc... View the full answer