If the stockholders of arakawa require 12 return on their


Arakawa Corporation is currently paying no dividend ; however, it is expected to pay a $1.00 dividend after two years, $1.00 after three years, $1.10 after four years, and then $1.20 a year uniformly after the fifth and subsequent years. If the stockholders of Arakawa require 12% return on their investment, find the price of the stock now. What is the price after 12 years?

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Finance Basics: If the stockholders of arakawa require 12 return on their
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