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  3. your company just paid a dividend of $2.50. the gr

Your company just paid a dividend of $2.50. The growth rate is expected to be...

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Finance

Your company just paid a dividend of $2.50. The growth rate is expected to be 4 percent for 1 year, 5 percent the next year, then 6 percent for the following year, and then the growth rate is expected to be a constant 7 percent thereafter. The required rate of return on equity is 11 percent. What is the current stock price?

$50.61

$54.04

$63.27

$60.98

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