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Analysts predict that Marvin Inc will pay dividends of $3 per share in year 2, and $3.8 per share in year 3. The firm then
Analysts predict that Marvin Inc will pay dividends of $3 per share in year 2, and $3.8 per share in year 3. The firm then expects its dividend to increase by 3% per year for two years (Ie: years 4 and 5). Thereafter, the dividends will increase at 5% indefinitely. The required rate of return is 12%. What is the value of the stock today?
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