Problem:
Thomas Brothers is expected to pay a $3.5 per share dividend at the end of the year (that is, D1 = $3.5). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 18%.
Required:
Question: What is the stock's current value per share?
Note: Please explain comprehensively and give step by step solution.