Problem:
Burk tires just paid a dividend of d0= $1.32 . analysts expect the companys dividend to grow by 30% this year, by 10% in year 2, and at a constant rate of 5% in year 3 and thereafter. The required return on this low-risk stock is 9.00%.
Requirement:
Question: What is the best estimate of the stocks current market value?
Note: Please show guided help with steps and answer.