McCabe Corporation will pay dividends of $15, $11, $9, and $2.95 over the next four years, followed by a constant growth rate of 4% in dividends indefinitely. The required return on the stock is 10.3%. The current share price needs to be calculated based on this dividend projection.

1. "Nonconstant Dividends [LO1] McCabe Corporation is expected to pay the following dividends
over the next four years: $15, $11, $9, and $2.95. Afterward, the company pledges to maintain a
constant 4 percent growth rate in dividends forever. If the required return on the stock is 10.3
percent, what is the current share price?"