Lawrence Industries' most recent annual dividend was $1.80 per share (D0=$1.80), and the firm's required return is 11%. Find the market value of...

Lawrence Industries’ most recent annual dividend was $1.80 per share (D0=$1.80), and the firm’s required return is 11%. Find the market value of Lawrence’s shares when:a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant growth from year 4 to infinity.b. Dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant growth from year 4 to infinity.

SolutionDoRsa) 1.811% Year Growth rate1234 8%8%8%5% Price at year 3 Dividend1.942.102.272.38 39.68 Price today= 1.94/(1.11)^1 + 2.10/(1.11)^2 + 2.27/(1.11)^3 +39.68/(1.11)^3$34.13...