A stock you are interested in paid a dividend of $1 last month. The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 12%. Calculate the expected price of the stock.
A) $15.38
B) $20.50
C) $21.05
D) $22.27
E) $26.14

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The Answer of A stock you are interested in paid a dividend of $1 last month. The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 12%. Calculate the expected price of the stock.
A) $15.38
B) $20.50
C) $21.05
D) $22.27
E) $26.14

A Stock You Are Interested in Paid a Dividend of $1