Fey fashions expects the following dividend pattern over


Fey Fashions expects the following dividend pattern over the next seven years.

year 1           year 2       year 3             year 4            year 5          year 6           year 7

    $1.30       $1.40         $1.51          $1.63             $1.76              $1.90              $2.05

The company will then have a constant dividend of $2.30 forever. What is the stock's price today if an investor wants to earn:

a. 15%

b. 30%

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Financial Management: Fey fashions expects the following dividend pattern over
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