Please assist with the given problem.
How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth in year 3. The growth will be a consistent 8% per year after that. Also similar investments are returning 14%. Is the stock value $116.10, 91.47, 88.31, or 71.49.
What are the steps to solve this?