Problem:
Albright motors is expected to pay a year-end dividend of $3.00 a share (D1=$3.00), then a dividend of $5 in 2 years (D2=$5.00), and a dividend of $7 in 3 years. After 3 years the dividend is expected to grow at a constant rate of 6% forever If the required (and expected) rate of return o the stock is 16 percent,
Required:
Question: What is the current stock price?
Note: Please provide reasons to support your answer.