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Using Significant Information to Calculate Stock Value

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Please help with the following problem.

How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth in year 3. The growth will be a consistent 8% per year after that. Also similar investments are returning 14%. Is the stock value $116.10, 91.47, 88.31, or 71.49.

What are the steps to solve this?

Thank you.

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This solution is comprised of a detailed explanation to answer how to calculate the value of a stock if you know the other significant information.

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Stock Value
How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth in year 3. The growth will be a consistent 8% per year after that. Also similar investments are returning ...

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