Find the price of a stock that is expected to pay dividend

Reference no: EM131974463

Question: Find the price of a stock that is expected to pay a dividend of $2 next year (period 1). Assume that the dividend will grow at 5 % per year from years 1 to 3, then at 4% per year from years 3 to 6 and then at 2 % forever. Assume too that investors require a return of 12% on this stock.

Reference no: EM131974463

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