1.) Firm Y's dividend is expected to grow at a rate of 12% per year over the next 3 years and then slow to a growth rate of 4% perpetually. The company's cost of equity is 11% and the annual dividend that has just been paid was $2.95.

The estimated present value at time 2 of all future dividends beyond that point in time is?

Multiple Choice $55.06 $59.21 $67.50 $64.54

2:)

Firm Y's dividend is expected to grow at a rate of 12% per year over the next 3 years and then slow to a growth rate of 4% perpetually. The company's cost of equity is 11% and the annual dividend that has just been paid was $2.95.

What is the intrinsic value of the M Company's stock today (time 0)?

Multiple Choice

• $68.08

• $54.03

• $57.82

• $41.61