What should the current price of the firms stock be today

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Reference no: EM132007201

Suppose a firm's expected dividends for the next three years are as follows: d1=$1.10, d2=$1.20, and d3=$1.30. After three years, the firm's dividends are expected to grow at 5% per year.

What should the current price of the firm's stock be today if investors require a rate of return of 12% on the stock?

(Do not round intermediate calculations. Round off final answer to the nearest $0.01)

Reference no: EM132007201

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