Reference no: EM132124309

Roza from STV recently said that Fiscer will start paying dividends in the medium term future because of all of the cash flow that it generates (coupled with a cash balance in excess of $20 billion). When pressed on the issue, Roza made a bold forecast that Fiscer will start paying its first dividend 6 years from now in the amount of $75.00 per share. Roza also projected that the dividends would grow, over the following 4 years, by 18.0% per year, after which the growth rate would be a constant rate of 6.0%/year, forever. If the appropriate required return (also called discount rate, because we use it for discounting!) for Fiscer stock is 10.0%, what should today's stock price be based on discounted valuation of the future dividends that Roza has projected?