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37. (LO 7.3) Peaks Organic Foods current dividend is $4. You expect the growth rate to be 10 percent for years 1 to 5, and
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Peaks organic foods current dividend (P) = $4 Growth rate from 1 to 5 years (gi) = 10%. Growth rate after syears (ga) = 3% R(dh Calculation of Price of stock Year Dividend (growing @ 10:4) 4.4 today (B2 PU Factor (12.54) 0.8888 0-7901 0.7023 0.6242

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