Calculate the economic value of the stock now

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At the end of the year 2016 Brown Bear Corporation paid dividends $2.97 per share. The company projects the following annual growth rates in dividends:

Year    Growth Rate

2017         15%

2018         15%

2019         15%

2020         10%

2021          7%

2022          6%

From year 2023 onward growth in dividends is expected to remain constant at 2% per year. The required rate of return for this stock is 10.22%. Calculate the economic value of the stock now (end of the Year 2016).

Reference no: EM131526074

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