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2. Suppose the company paid dividend of $26.99. That is, D 0 is $26.99. What is the amount of dividend in Year 5? That is,
2. Suppose the company paid dividend of $26.99. That is, D0 is $26.99. What is the amount of dividend in Year 5? That is, what is D5? Assume that the dividends are expected to grow by 5% each year.
3. ABC,. Inc just paid a dividend of $13.81. The dividends are expected to grow by 23% in Years 1-3. After that, the dividends are expected to grow by 5% each year. If the required rate of return is 17%, what is today's price of the stock?
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