Roza from stv recently said that fiscer will start paying


Roza from STV recently said that Fiscer will start paying dividends in the medium term future because of all of the cash flow that it generates (coupled with a cash balance in excess of $20 billion). When pressed on the issue, Roza made a bold forecast that Fiscer will start paying its first dividend 6 years from now in the amount of $75.00 per share. Roza also projected that the dividends would grow, over the following 4 years, by 18.0% per year, after which the growth rate would be a constant rate of 6.0%/year, forever. If the appropriate required return (also called discount rate, because we use it for discounting!) for Fiscer stock is 10.0%, what should today's stock price be based on discounted valuation of the future dividends that Roza has projected?

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