Thirsty Cactus Corp. just paid a dividend of $2.50 per share. The dividends are expected to grow at 17 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 13 percent, what is the price of the stock today?
I tried to find it by using the cash flow button on my financial calculator and by drawing a timeline, but I couldn't get the right answer. An explanation would be great!
Thank you!