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A stock is expected to pay the following dividends: $1.3 in 1 year, $1.6 in 2...

A stock is expected to pay the following dividends: $1.3 in 1 year, $1.6 in 2 years, and $2 in 3 years, followed by growth in the dividend of 6% per year forever after that point. The stock's required return is 11%. The stock's current price (Price at year 0) should be $____________.

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Answer #1

The current price of the stock is the present value of future dividends.

The current price = $34.9347

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