Firm required return-what is its current stock price

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ABC Company's last dividend was $0.8. The dividend growth rate is expected to be constant at 6% for 4 years, after which dividends are expected to grow at a rate of 4% forever. The firm's required return (rs) is 16%. What is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131930506

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