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A stock is expected to pay no dividends for the first three years, i.e., D1...

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Finance

A stock is expected to pay no dividends for the first three years, i.e., D1 = $0, D2 = $0, and D3 = $0. The dividend for Year 4 is expected to be $5.00 (i.e., D4 = $5.00), and it is anticipated that the dividend will grow at a constant rate of 8% a year thereafter. The expected rate of return is 13%. What is the current price of the stock?

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