Calculate the economic value of the stock now end of the


At the end of the year 2016 Brown Bear Corporation paid dividends $3.56 per share. The company projects the following annual growth rates in dividends:

Year    Growth Rate

2017   15%

2018   15%

2019   15%

2020   9%

2021   7%

2022   4%

From year 2023 onward growth in dividends is expected to remain constant at 3% per year. The required rate of return for this stock is 10.63%.

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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