Stock Valuation

[kselb24@ufl.edu]

Please Help

A company pays $0.16 dividend in year 1. Assume the company will pay $0.20 in year two, $0.25 in year three, $0.30 in the following year, with 5% constant thereafter. The required return is 8%.
What would you be willing to pay for the stock today?

 

[Denis]

Post your work so we can see where you're stuck.
Have you been taught anything on this topic?
If not, then why was the problem given to you?