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Do not use Excel or Matrix You have to show your work Motor Homes Inc. (MHI) is presently in a stage of abnormally high growth

Do not use Excel or Matrix

You have to show your work

Motor Homes Inc. (MHI) is presently in a stage of abnormally high growth because of a surge in the demand for motor homes. The company expects earnings and dividends to grow at a rate or 20% for the next 4 years, after which time there will be no growth (g=0) in earnings and dividends. The company's last dividend was $1.50. MHI has a beta of 1.5, the return on the market is currently 6%, and the risk-free rate is 4%. What should be the current price per share of common stock?

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