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  3. a company just paid a dividend of $1.50 per share.

A company just paid a dividend of $1.50 per share. You expect the dividend to...

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Finance

A company just paid a dividend of $1.50 per share. You expect the dividend to grow 13% over the next year and 10% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 6% per year. If the required rate of return is 9% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)

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