1) How to calculate the average market price?
Anoi Inc. is about to announce that it will expect to experience rapid growth for the near future with dividends growing at 27% for the next two years, 17% for the following two years, and then its current normal growth of 7% thereafter. The required return is 14% and the stock currently sells at $70 without this new information. What is the appropriate price for this stock after the announcement? And If investors require a 12% return on this stock.