Problem
"Stock & Bond Valuation VF Corporation (ticker symbol VFC) is a global apparel and footwear company, and they have a large market share in the U.S. backpack market. The company had to make an unpopular decision in February: They cut their dividend payment by more than 50%. Suppose analysts expect VF to make annual dividend payments going forward, forever, starting one year from today. There is no growth in dividends during the first two years, 1.20 at time 1, and 1.20 at time 2. Starting in year 3, VF starts growing their dividend by 5% per year, 1.26 at time 3 and so forth. VF's expected return is equal to 10% per year. What is today's stock price of VC according to the dividend discount model?