Hello,

I am unsure if I am figuring out this question correctly. Nachman Industries just paid a dividend of D₀= $1.42.Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 4% in Year 3 and thereafter.The required return on this stock is 8.00%.What is the best estimate of the stock's current market value?

I was going to take the Do of (1.42) ^4 x 30% then 1.42^4x10%, and then add both answers and divide by 8%.

Any insight would be helpful. TY!