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F Fey Fashions expects the following dividend pattern over the next sevenyears: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year

F

Fey Fashions expects the following dividend pattern over the next sevenyears:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$1.101.10 $1.221.22 $1.351.35 $1.501.50 $1.671.67 $1.851.85

$2.052.05

The company will then have a constant dividend of $2.302.30 forever. What is thestock's price today if an investor wants to earn:

a. 17%? b. 21%

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