Hey guys, first time poster here.

I have a stock evaluation problem i cannot solve for the life of me. Can someone help me with it?

A company just paid a dividend of $1 with dividends expected to grow by 20% for the next 3 years and 5% thereafter. If your RRR is 12%, you're willing to pay $___ for the stock.


The solution given is: $12.60

Ask your tutor, and stop trying to cheat on your homework.