Problem
A stock will pay a dividend of $1 one year from today. Dividends at the end of years 2 and 3 will be $2 and $3, respectively. For years 4 and beyond, dividends will grow at a constant rate of 0.02 per year. (Note this is a decimal: 0.05 equals 5%). If your required return on the stock is 0.17 per year (Note: this is also a decimal), what is the current price?