Problem:
The last dividend paid by Klein Company was $1.00. Klein's growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. Klein's required rate of return on equity (rs) is 12 percent.
Requirement:
Question: What is the current price of Klein's common stock?
Note: Please show the work not just the answer.