Prime Tire's current dividend is $4.00. Dividends are expected to grow by 25 percent for years 1

Question:

Prime Tire's current is $4.00. Dividends are expected to grow by 25 percent for years 1 to 3 and 10 percent thereafter. The required rate of return on the stock is 15 percent. What is Prime's current stock price?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...