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#7 (20 points) Ravens Industries just paid of dividend of D0 = $1.32. g (Year 1-2) g (Year 3) g (Year 4+) Analysts expect the
#7 (20 points) Ravens Industries just paid of dividend of D0 = $1.32. g (Year 1-2) g (Year 3) g (Year 4+) Analysts expect the company's dividend to grow by 30% in year 1 and year 2, then by 10% in year 3, 30% 10% 5% and then at a constant rate of 5% in year 4, and forever. The required return on this low-risk stock is 9.00 percent. What is the best estimate of the stock's current market value?
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