East side Corporation is expected to pay the following dividends over the next four years: $12,...

East side Corporation is expected to pay the following dividends over the next four years: $12, $8, $7, and $2.85. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current price?

Expert Solution

Solution :

The current price of the stock is = $ 51.05

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 11 hours ago

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