Computing the current price of the stock

Reference no: EM1366590

CPX Corporation just paid a dividend of $1 each share. Analysts expect the company's dividend to increase 10 percent this year and 8 percent the next year. After two years the dividend is expected to grow at a constant rate of 7%. The required rate of return is 12%. What is the current price of the stock?

a)20.00 b)21.56 c)23.59 d)22.20 e)22.01
f)29.51 g)26.51 h)23.51 i)23.01 j)22.59

Reference no: EM1366590

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