Based on your knowledge of how to value securities

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An attorney from Indianapolis has recently contacted you for help in determining the value of one of his client’s portfolios of securities. The client has the following in her stock portfolio:

a) 1000 shares of Crean, Inc. common stock. Crean just paid a dividend of $1.25.   The required return on the stock is 10%. The dividends for the stock are expected to grow at the following rates:    years 1-2: 20%    years 3-5: 8%  years 6+: 4%

Based on your knowledge of how to value securities, what is the value?

Reference no: EM131062994

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