The required return on an investment is 10 percent. You estimate that firm X's divi- dends will grow as follows: Year INMI 2 3 Dividend $1.20 2.00 3.00 4.50 For the subsequent years you expect the dividend to grow but at the modest rate of 4 percent annually. What is the maximum price that you should pay for this stock? Management

The required return on an investment is 10 percent. You estimate that firm X 's dividends will grow as follows: For the subsequent years you expeet the dividend to grow but at the modest rate of 4 percent annually. What is the maximum price that you should pay for this stock