Evaluate current value of one share of stock

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Question: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $2.60 per share. What is the current value of one share of this stock if the required rate of return is 8.10 percent? a)$90.41 b)$105.30 c)$93.01 d)$107.90 e)$77.11.

Reference no: EM131441581

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