Two-Stage Dividend Growth Model Chartreuse County Choppers Inc. i experiencing rapid growth, the company expect dividends to

Question:

Two-Stage Dividend Growth Model Chartreuse County Choppers Inc. i experiencing rapid growth, the company expect dividends to grow at 25 percent per year for the next nine years before leveling off at 6 percent into perpetuity. The required return on the company’s stock is 12 percent. If the dividend per share just paid was $1.05, what is the stock price?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...