What is the current value of elaine vegetable market

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Elaine's Vegetable Market currently plays a $1.50 common stock dividend. Robert is considering an investment in Elaine's Vegetable Market and plans to hold the stock for three years at which time he expects to sell the stock for $50.00. Robert expects the dividend to increase to $2.00 one year from now $2.75 in two years $3.75 in three years. What is the current value of Elaine's Vegetable Market common stock to Robert if he requires a 12% rate of return?

Reference no: EM132691971

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