What should be the price of the company stock today

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Question - Assume today is December 31, 2017. Imagine Works Inc. just paid a dividend of $1.10 per share at the end of 2017. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 5% annually. The company's cost of equity (rs) is 10%. Using the dividend growth model (allowing for non-constant growth), what should be the price of the company's stock today (December 31, 2017)?

Reference no: EM132857976

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