The dividend forecasts of Elis Co. Ltd for the next three years are as follows: YEAR EXPECTED DIVIDEND (Ghc)

1 1

2 2

3 2.50

After the third year, the dividend grows at a constant rate of 5 percent per year. The required return is 10 percent. What is the value of the stock today?

Calculate the fair market price of a stock that just gave a dividend of $1.50, and the long-term annual growth rate of the company is 3%. Investors require a return of 16% from such a stock