1. Compute the PV of the Total Dividend Stream, PV of the Expected Price, and Total Value of Common Stock. Using a Multi-Stage Dividend Discount Model to Value Common Stock ASSUMPTIONS 0 1 2 $1.03 3 $1.05 $1.00 D P 4 $1.08 $25.00 D P equals dividend per share equals expected price per share equals required return on equity equals dividend growth rate r r 8.00% 2.50% 8 8