What is the value of this stock today based on the


Pacific Enterprises Inc. stock does not now pay dividends. Investors expect that it will begin paying a dividend of $2.00/share in exactly 5 years at time 5. That is, they forecast that D5 will be $2.00/share. Investors expect that the dividend will then remain at that level of $2.00/share forever after that. They require a return of 19.00% on this stock. What is the value of this stock today based on the discounted dividend model?

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Financial Management: What is the value of this stock today based on the
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