Nonconstant growth
Year 3 Dividend, $D_3$
$1.00
Supernormal growth rate, $g_s$
23.00%
Normal growth rate, $g_n$
5.00%
Required return, $r_s$
16.00%
Dividends
$P_s$
Cash flows to common stockholders
PV of cash flows to common stockholders
Stock Price, $P_0$
Alternatively, using Excel NPV function:
Stock Price, $P_0$