I need a little bit of help with this problem.
Stag Corp. will pay dividends of $4.75, $5.25, $5.75, and $7 for the next four years. Thereafter, the company expects its growth to be at a constant rate of 7 percent. If the required rate of return is 15 percent, what is the current price of the stock?
For the most part I understand the nonconstant growth formula and how to calculate when dividends are constant but I am completely confused with this problem. Thank you.