3. Nancy Custom Cycles’ common stock currently pays no dividends. The company plans to begin
paying dividends beginning 2 years from today. The first dividend will be $3.00 and dividends will
grow at 5 percent for the following year and then the dividend will be $4.50 for the following two
year. After that, the dividend is projected to increase by 5 percent annually. Given a required return of
12 percent, what would you pay for the stock today?
- please explin how to solev it step by step, bc i need to study this for final exam.