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Sin City Adventures (SCA) is a startup company that offers guided tours of Las Vegas. SCA will pay its first dividend ($1.50) later today. SCA

Sin City Adventures (SCA) is a startup company that offers guided tours of Las Vegas. SCA will pay its first dividend ($1.50) later today. SCA expects to be able to increase that dividend by 20% for 4 years. Thereafter, SCA expects to increase its annual dividend by 2 percent per year. What is the current value of one share of SCA stock if the required rate of return is 15 percent? Answer is below, please show how to get it.

Answer: $22.14

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