Problem:
ABC just paid a dividend of D0 = $2.1. Analysts expect the company's dividend to grow by 30% this year, by 20% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 17%.
Required:
Question: What is the best estimate of the stock's current market value?
Note: Please show how you came up with the solution.