During 2012, FedCom was affected by a strike that caused a disruption in operations and the subsequent suspension of dividends to stockholders. The company doesn't plan on paying dividends until the year 2016, at which time an annual dividend of $3.50 will be declared. For 2017 and 2018, the dividend is expected to increase by 10%. For the years 2019 and beyond, the dividend growth rate is expected to be a constant 5%. The required rate of return for FedCom is 11%.
Find the value of FedCom common shares today (2013).
$43.98
$51.59
$58.33
$85.69