What should be the price of the stock today

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Lindseys Lab's Stock is expected to pay a dividend (D1) of $1.25 per share at the end of the year. The dividend is expected to increase by 20 percent per year for each of the following two years (years 2 and 3). After that, the dividend is expected to increase at a constant rate of 6 percent per year. The stock has a required return of 10 percent. What should be the price of the stock today? (If expert knows how to explain this using a financial calculater would be even better)

Reference no: EM131561401

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