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City Garden Suppliers paid a $2 dividend yesterday. It is expected that the dividend will grow at 9.5 percent per year for 4 years, 7.25
City Garden Suppliers paid a $2 dividend yesterday. It is expected that the dividend will grow at 9.5 percent per year for 4 years, 7.25 percent per year for 9 years, and then at 4 percent per year thereafter. If the investors' expected rate of return is 12 percent, what is the stock worth today? Hint: Use the present value formula for a growing annuity:
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