Problem:
Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next 3 years, respectively. Beginning 4 years from now, the dividend is expected to increase by 3.25 percent annually.
Requirement:
Question: What is one share of this stock worth to you if you require a 12.5 percent rate of return on similar investments?
Note: Please describe comprehensively and provide step by step solution.