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The dividends of a common stock are expected to be 1 at the end of each of the next 5 years and 2...

The dividends of a common stock are expected to be 1 at the end of each of the next 5 years and 2 for the following 5 years. The dividends are expected to grow at a fixed rate of 2% per year thereafter. Assume an annual effective interest rate of 6%. Calculate the price of this stock using the dividend discount model.

Hello, I know this question already has a posting, but I am confused on how they are getting some of the numbers involved.

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2メ1、O or the divid nds paid dMxing the 2 a 51Cr ナ t o I ‘06 5T 5 1o 丨.oc Thonk

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