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The required rate of return of equity investors ( i . e . , cost of equity ) is 1 8 % . Given the

The required rate of return of equity investors (i.e., cost of equity) is 18%.
Given the following information and the cost of equity, calculate the implied share price for XYZ:
paid a dividend of $1 recently
The dividends is expected to increase by 10% in year one and by 15% in year two
After that, dividends will increase at a rate of 5% per year indefinitely
Implied share price: ($)
What is the implied share price?

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