Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 3% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The companys most recent dividend, D0, was $1.37, and its required rate of return is 11%. What is the expected Horizon Value at t=4?

And

And Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 3% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The companys most recent dividend, D0, was $1.37, and its required rate of return is 11%. What is the current price of the common stock? Thank you