Determine Stock price with differential dividend growth

Anonymous
timer Asked: Mar 28th, 2016

Question description

Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.40 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.2 percent, forever. The appropriate rate of return on the stock is 10 percent, compounded quarterly.

What is the current stock price?

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