1) A company paid a dividend of $3.00. There is a forecast of 2% annual growth for next 2 years, 1% annual growth for the following 3 years and then no growth after that time. The required rate of return for the company is 14%. What is the estimated present value of company stock?

2) A competitor stock analyst says there is a 14% required return assessment but thinks that company's dividends will grow at a steady rate of 2% for the indefinite future. What is the estimated present value of company stock?

3) 5 year later, assumed the market agreed with the competitor initial evaluation, and had brought the company stock at this price valuation. However, we found out that company's dividend has not grown. You have collected 5 annual dividends of $3.00 and have now decided to sell the stock. If the market is now pricing the stock at a 0% expected growth for the indefinite future, what will be your holding period return (HPR) for your share of company's stock? For simplicity, assume the 14% required return still holds. What annual rate of return you earned on your investment?

*All 3 questions are related to each other. Show all excel that output answers.