Was hoping you could still help out with this problem below?
Suppose a well-established company is expected to have a constant growth rate in dividends of 5% for a very long time. What is value of the company's stock, if its current dividends are $1 per share and the discount rate investors require on the stock is 10%? What would be the value of the stock if it were expected to grow at 7% for three years and then 5% thereafter?