Answer:
Current Value = $31.50
Explanation:
The stock price formula in general is:
[tex]P_n=\frac{D_n}{(1+g)^n}[/tex]
Where
P is the stock price
D is the dividend
g is the growth rate, discount rate
Now, we have to find the sum of all the prices in each year:
[tex]\frac{3}{1+0.14}+\frac{6}{(1+0.14)^2}+\frac{36}{(1+0.14)^3}= 31.50[/tex]
Current Value = $31.50
