# Fight Finance

#### CoursesTagsRandomAllRecentScores

 Scores keithphw $6,011.61 Jade$1,815.80 Boeti $1,002.09 ZOE HY$860.33 Chu $789.98 royal ne...$750.00 Leehy $713.33 Visitor$650.00 JennyLI $625.61 Visitor$590.00 Visitor $555.33 Visitor$550.00 Visitor $550.00 Visitor$540.00 Visitor $500.00 Yizhou$489.18 Visitor $480.00 Visitor$480.00 Visitor $470.00 Visitor$464.70

A stock is expected to pay the following dividends:

 Cash Flows of a Stock Time (yrs) 0 1 2 3 4 ... Dividend (\$) 0 6 12 18 20 ...

After year 4, the dividend will grow in perpetuity at 5% pa. The required return of the stock is 10% pa. Both the growth rate and required return are given as effective annual rates.

What will be the price of the stock in 7 years (t = 7), just after the dividend at that time has been paid?