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TD Bank just released their annual financial statement. The analysts are expecting that TD's earnings and dividends will continue to grow at 16% for the

TD Bank just released their annual financial statement. The analysts are expecting that TD's earnings and dividends will continue to grow at 16% for the next period. After that, growth will level at 5% for the indefinite future. Last year's dividend was $2 per share and analysts figure that the required return on this stock should be 16%. Suppose that TD is currently trading at $50 per share. How many years of growth at 16% is the market predicting? How does that affect your decision to buy TD shares?

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