TD BANK’S EARNINGS AND DIVIDENDS ARE EXPECTED TO GROW AT A RATE OF...

17. TD Bank’s earnings and dividends are expected to grow at a rate of 10% during the next 2 years, at 8% in the third year, and at a constant rate of 6% thereafter. If last dividend paid was $1 and the required rate of return on its common stock is 12%. How much should you pay today for one share of TD Bank?