Answer:
Current share price=$3.26
Explanation:
The current value/share price of the stock can be expressed as;
Current share price=D1/(k-g)
where;
D1=Expected annual dividend per share
k=required rate of return
g=growth rate of dividend
In our case;
D1=Average dividend per share=(5.2+16.2+21.2+3)/4
D1=45.6/4=$11.4
k=9%
g=5.5%
Replacing;
Current share price=11.4/(9-5.5)
Current share price=11.4/3.5
Current share price=$3.26