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Common Stock Value- Variable Growth. Lawerence industries most recent annual dividend was $1.92 per share (D0=...

Common Stock Value- Variable Growth. Lawerence industries most recent annual dividend was $1.92 per share (D0= $1.92) and the firm's required return is 12%. Find the market value of Lawerence's shares when dividends are expected to grow at 30% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.

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Year Cash flows $2.50 $3.24 $4.22 $63.27 pv @ 12% 0.89286 0.79719 0.71178 0.71178 Present value $2.23 $2.59 $3.00 $45.04 $52.

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