Problem:
The Farmers Market just paid an annual dividend of $5 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a 13 percent return on the stock for the first 3 years, a 9 percent return for the next 3 years, a 7 percent return thereafter.
Required:
Question: What is the current price per share?
Note:Provide specific examples to support your answers.