Calculate the economic value of the stock now end of the


At the end of the year 2016 Brown Bear Corporation paid dividends $2.64 per share. The company projects the following annual growth rates in dividends:

Year    Growth Rate

2017        12%

2018        12%

2019        12%

2020        10%

2021         7%

2022         6%

From year 2023 onward growth in dividends is expected to remain constant at 2% per year. The required rate of return for this stock is 11.88%.

Calculate the economic value of the stock now (end of the Year 2016).

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Finance Basics: Calculate the economic value of the stock now end of the
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