10. Growth Rate = 13.346%

12. Required Return from Q7 = 8.10%

10. Two-stage Non-constant DDM: Now let's assume that for the next four years MSFT will grow its dividends at the growth rate you estimated in (9) above. Assuming D1 =$2.48, estimate dividends for: D2; D3;D4 and D5 ? You may round each dividend estimate to the nearest penny. (10 points) 11. Assuming that dividend growth reverts back to a LT sustainable growth rate =6.50% after Year 5 (i.e., Year 6 to infinity), estimate D6 and P5. (5 points) 12. Use the Non-constant growth DDM from the Stock Video Lecture (at 17:20) to estimate the current value of MSFT using the dividend \& price information you found in (10) \& (11) above, and the required rate of return found in (7). [HINT: You already have all the data, not much work left here....simply find the PV of the cash flows.]| (10 points) 10. Two-stage Non-constant DDM: Now let's assume that for the next four years MSFT will grow its dividends at the growth rate you estimated in (9) above. Assuming D1 =$2.48, estimate dividends for: D2; D3;D4 and D5 ? You may round each dividend estimate to the nearest penny. (10 points) 11. Assuming that dividend growth reverts back to a LT sustainable growth rate =6.50% after Year 5 (i.e., Year 6 to infinity), estimate D6 and P5. (5 points) 12. Use the Non-constant growth DDM from the Stock Video Lecture (at 17:20) to estimate the current value of MSFT using the dividend \& price information you found in (10) \& (11) above, and the required rate of return found in (7). [HINT: You already have all the data, not much work left here....simply find the PV of the cash flows.]| (10 points)