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#5 An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 Dividend $1.99

#5 An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 Dividend $1.99 $2.25 $3.12 The analyst notes that American Dream stock has a required return of 9.90%. The analyst projects that dividends will grow at a constant rate of 2.84% per year after year 3. What is the current price of the stock if his assumptions are correct? Submit Answer format: Currency: Round to: 2 decimal places. Hide Hint

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