Problem:
Your company paid a dividend of $2.00 last year. The growth rate is expected to be 4 percent for 1year, 5 percent the next year, then 6 percent for the following year, and then the growth rate is expected to be a constant 7 percent thereafter. The required rate of return on equity (rs) is 10 percent.
Required:
Question: What is the current stock price?
Note: Please show how you came up with the solution.