What is the value of one share of gp today

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Question 1: Generic Pharmaceuticals (GP) has just paid an annual dividend on its common stock of $2.00 per share. Analysts expect GP's annual dividend to stay at $2.00 for the next two years and then jump to $2.20 for three years. Thereafter, dividends are expected to grow at 3% per year into perpetuity. If stockholders require an 8% annual return on GP common, what is the value of one share of GP today? (Round to 4 decimal places in your intermediate calculations.)

Reference no: EM132492894

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