Assume Stanton Corporation will pay an annual dividend of $0.65
one year from now. Analysts expect this dividend to grow at 12% per
year thereafter until the fifth year. After then, growth will level
off at 2% per year. The firm’s equity cost of capital is 8%. Use
the dividend-discount model to answer the following questions. What
is the value of a share of Stanton stock now? If the firm’s share
price is currently trading at $13, will you sell...