SagaTech , Inc. just paid a dividend of $ 4.00 per share (that k, 0 = 4.09/70 dividends of SagaTech are expected to grow at a rate of 20 percent g1=.20) and at a rate of 10 percent the following year that is i.e. , from year 3 to infinity ) the growth rate in dividends is expected to per yearAssuming the required rate of return on SagaTechis 20 compute the current price of the stock

SagaTech, Inc. just paid a dividend of $4.00 per share (that is, D0=4.00 ) The dividends of SagaTech are expected to grow at a rate of 20 percent next year ithat is g1=.20 ) and at a rate of 10 percent the following year (that is, g2=.10 ) Thercitier (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percant per year. Assuming the required rate of return on SagaTech, Inc. stock is 20 pescent current price of the stock