10. Now, using the Value Line sheet, estimate the average growth rate of dividends for MSFT over the last 10 years, from 2008-2018? Round your growth estimate to 4 decimal places. [Hint: The Growth rate (g) can be calculated as CPT i on your calculator or in Excel as a TVM problem.

[For example: What is the rate of return if you invest $1 (div0) today and in 10 years it is worth $4 (div10)?]

(5 points)

10 A:Two-stage Non-constant DDM: Now lets assume that for the next four years MSFT will grow its dividends at the growth rate you estimated in (10) above. Assuming D1 = $1.84, what are the dividends for: D2 ; D3 ; D4 ; and D5 if they grow at the rate estimated in (10) above? You may round each dividend estimate to the nearest penny. (10 points)

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