=+LG 4 P7–11 Common stock value: Constant growth Christine Law is the Chief Investment Officer for Elite Investment Company. She is now calculating the equity value of Rays Food Company. She compiled the following dividend information for the company.

What is the growth rate for each year? Calculate the average growth rate of the stock. In 2022, the company paid the $5.72 dividend. Christine believes that the company’s dividends will grow constantly at the average growth rate calculated. If the required return is 10%, what is the value of the stock?