Calculate the economic value of the stock now end of the


At the end of the year 2016 Brown Bear Corporation paid dividends $3.32 per share. The company projects the following annual growth rates in dividends: Year Growth Rate

2017 13%

2018 13%

2019 13%

2020 10%

2021 8%

2022 5%

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 11.47%.

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

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Financial Management: Calculate the economic value of the stock now end of the
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