Lohn Corporation is expected to pay the following dividends over the next four years: $12, $10, $9, and $4. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price

Price of the stock today = $53.14

Explanation:

given data

dividends year D1 = $12

dividends year D2 = $10

dividends year D3 = $9

dividends year D4 = $4

constant growth rate  = 6 percent

required return stock Kk = 15 percent

solution

we get here Price of the stock today that is

Price of the stock =   .................1

here P4 =     .............2

and  where D5 = D4(1+g)    .............3

so here put value in equation 1

Price of the stock today  =      

Price of the stock today = 53.1368

Price of the stock today = $53.14

oh my god you are going so many marks marks i don't want to give you answers sorry

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1. economic development

2. culture

3.technological development

4. education