USING A FINANCIAL CALCULATOR

A firm is increasing next year's dividend to $$5$ per share. The forecast stock price next year is $$105.$ Equally risky stocks of other companies offer expected rates of return of $10\%.$ What should this firm$$s common stock sell for? Assume that the same firm's dividend and share price are expected to grow at a constant $5\%$ per year. Calculate the current value of stock with the dividend discount model using a three$-$year horizon.