1.)

Company has the following dividend stream.

D1 = 1.28

D2 = 3.28

D3 = 4.04

D4 = 5.75

Dividend is expected to be constant after year 4, with a growth rate of 4%. The cost of equity is 10%. What is the stock price, P0 , today?

2.)

Company has the following dividend stream.

D1 = 3.74

D2 = 4.41

D3 = 5.06

Dividend is expected to be constant after year 4, with a growth rate of 4%. The cost of equity is 10%. What is the stock price, P0 , today?