At the end of the year 2020 Brown Bear Corporation paid dividends $3.24 per share....
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At the end of the year 2020 Brown Bear Corporation paid dividends $3.24 per share. The company projects the following annual growth rates in dividends:
Year Growth Rate
2021 15%
2022 15%
2023 15%
2024 9%
2025 6%
2026 4%
From year 2027 onward growth in dividends is expected to remain constant at 3% per year. The required rate of return for this stock is 9.20%.
Calculate the economic value of the stock now (end of the Year 2020).
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