Assume that at the end of next year, Philip Morris will pay a $2.10 dividend per share. After that, the dividend is expected to increase at a constant rate of 6%. If you require a 12% return of the stock, what is the value of Philip Morris stock?

Question

Assume that at the end of next year, Philip Morris will pay a $2.10 dividend per share.  After that, the dividend is expected to increase at a constant rate of 6%.  If you require a 12% return of the stock, what is the value of Philip Morris stock?

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The Answer of Assume that at the end of next year, Philip Morris will pay a $2.10 dividend per share.  After that, the dividend is expected to increase at a constant rate of 6%.  If you require a 12% return of the stock, what is the value of Philip Morris stock?

Assume That at the End of Next Year, Philip Morris