(SOLVED) City Garden Suppliers paid a 1 dividend yesterday It is


Question Description:

$19

City Garden Suppliers paid a $1 dividend yesterday. It is expected that the dividend will grow at 10% per year for 4 years, 8% per year for 10 years, and then at 5% per year thereafter. If the investors’ expected rate of return is 12%, what is the stock worth today?

Answer

$19