Calculate the current value of the stock


Problem:

R&D Technology Corporation just paid a dividend of $1.00 per share. Analysts expect its dividend to grow at 19% per year for the next two years and then 4% per year thereafter.

Required:

Question: If the required rate of return in the stock is 14%, calculate the current value of the stock.

Note:  Please answer in proper manner and show all computations

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Accounting Basics: Calculate the current value of the stock
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