Nonconstant Dividend Growth Valuation
Conroy Consulting Corporation (CCC) has a current dividend of D_{0} = $2.20. Shareholders require a 9% rate of return. Although the dividend has been growing at a rate of 28% per year in recent years, this growth rate is expected to last only for another 2 years (g_{0,1} = g_{1,2} = 28%). After Year 2, the growth rate will stabilize at g_{L} = 6%.
