A stock just paid an annual dividend of $2.4. The dividend is expected to grow by 6% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1% per year, from 6% in year 4 to 2% in year 8 and stay at that level forever.

The required rate of return is 12%.

What is the expected dividend in 8 years? Part 2 What is the value of the stock in 8 years? Part 3 What is the value of the stock now? What is the expected dividend in 8 years? Part 2 What is the value of the stock in 8 years? Part 3 What is the value of the stock now