Lawrence Industries’ most recent annual dividend was $1.80 per share and the firm’s required return is 11%. Find the market value of Lawrence’s shares when:
a) Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.
b) Dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant annual growth rate in years 4 to infinity