. Hope corporation paid a dividend of $2.00 (D0) last year. The growth rate is expected to be 20 percent and 10 percent during the next two years, and then the growth rate is expected to be a constant 5 percent thereafter. The required rate of return on equity (rS) is 10 percent. What is the current stock price (P0)?

i am thinking c. sorry if im wrong .

step-by-step explanation:

(2 x^3 + 7 x^2 + 5 x + 2)/(x (x + 2))

step-by-step explanation:

simplify the following:

x/x^2 + 3 x + 2 - (x (x + 1))/(x + 2)

combine powers. x/x^2 = x^(1 - 2):

x^(1 - 2) + 3 x + 2 - (x (x + 1))/(x + 2)

1 - 2 = -1:

x^(-1) + 3 x + 2 - (x (x + 1))/(x + 2)

put each term in 1/x + 3 x + 2 - (x (x + 1))/(x + 2) over the common denominator x (x + 2): 1/x + 3 x + 2 - (x (x + 1))/(x + 2) = (x + 2)/(x (x + 2)) + (3 x^2 (x + 2))/(x (x + 2)) + (2 x (x + 2))/(x (x + 2)) - (x^2 (x + 1))/(x (x + 2)):

(x + 2)/(x (x + 2)) + (3 x^2 (x + 2))/(x (x + 2)) + (2 x (x + 2))/(x (x + 2)) - (x^2 (x + 1))/(x (x + 2))

(x + 2)/(x (x + 2)) + (3 x^2 (x + 2))/(x (x + 2)) + (2 x (x + 2))/(x (x + 2)) - (x^2 (x + 1))/(x (x + 2)) = ((x + 2) + 3 x^2 (x + 2) + 2 x (x + 2) - x^2 (x + 1))/(x (x + 2)):

(2 + x + 3 x^2 (x + 2) + 2 x (x + 2) - x^2 (x + 1))/(x (x + 2))

3 x^2 (x + 2) = 3 x^3 + 6 x^2:

(2 + x + 3 x^3 + 6 x^2 + 2 x (x + 2) - x^2 (x + 1))/(x (x + 2))

2 x (x + 2) = 2 x^2 + 4 x:

(2 + x + 6 x^2 + 3 x^3 + 2 x^2 + 4 x - x^2 (x + 1))/(x (x + 2))

-x^2 (x + 1) = -x^2 - x^3:

(-x^2 - x^3 + 3 x^3 + 6 x^2 + 2 x^2 + 4 x + x + 2)/(x (x + 2))

grouping like terms, 3 x^3 - x^3 + 6 x^2 + 2 x^2 - x^2 + 4 x + x + 2 = (3 x^3 - x^3) + (6 x^2 + 2 x^2 - x^2) + (x + 4 x) + 2:

((3 x^3 - x^3) + (6 x^2 + 2 x^2 - x^2) + (x + 4 x) + 2)/(x (x + 2))

3 x^3 - x^3 = 2 x^3:

(2 x^3 + (6 x^2 + 2 x^2 - x^2) + (x + 4 x) + 2)/(x (x + 2))

6 x^2 + 2 x^2 - x^2 = 7 x^2:

(2 x^3 + 7 x^2 + (x + 4 x) + 2)/(x (x + 2))

x + 4 x = 5 x:

answer:   (2 x^3 + 7 x^2 + 5 x + 2)/(x (x + 2))

answer: 48

just remember to use pemdas:

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