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Cash flows are end-of-period Crocker Corporation just paid a dividend of $3.40 per share this morning. The company will increase its dividend by 20 percent

Cash flows are end-of-period

Crocker Corporation just paid a dividend of $3.40 per share this morning. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever.

If the required return on Crockers stock is 13 percent, at what price will a share of stock sell today?

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