Problem:
Cell-Talk is a rapidly growing firm. It plans to increase dividends by 25 percent for each of the next three years and then allowing the dividend to grow at a constant 6% thereafter. The company just paid a dividend of $0.80 per share.
Required:
Question: What is the current value of one share of this stock if the required rate of return is 17%?
Note: Explain all calculation and formulas.