Avatar manufacturing is going to retain more of its


Avatar Manufacturing is going to retain more of its earnings to help finance its growth. It will reduce its annual dividends by 20 percent a year for the next 3 years. After that, it will maintain a constant dividend of $1.60 per share. Last year the annual dividend was $2.60 per share. The required rate of return is 13%. What is the market value of this stock? -Note: I know that the answer is $12.60. I need to know how to get that answer. NOT using Excel. I also have a financial calculator (BA II Plus) and am fluent in most functions.

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Financial Management: Avatar manufacturing is going to retain more of its
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