The annual dividends of a stock for the next three years are expected to be $2.00, $2.10, and $2.20.
The stock price is expected to be $20.00 at the end of three years. If the required rate of return on
the shares is 10%, what is the estimated value of the share? If the share is currently trading at $25
in the market, what is the appropriate action that should be taken by an investor?