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4. (10pt) Dividend growth model - Nonconstant growth. Assume that Valley Nova is expected to experience a growth g for the next three years, then

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4. (10pt) Dividend growth model - Nonconstant growth. Assume that Valley Nova is expected to experience a growth g for the next three years, then return to its long-run constant growth rate of 6%. Find the stock's value under these conditions. What are its expected dividend yield and its capital gains yield in Year 1 ? Year 4 ? a. g=30% b. g=0% 4. (10pt) Dividend growth model - Nonconstant growth. Assume that Valley Nova is expected to experience a growth g for the next three years, then return to its long-run constant growth rate of 6%. Find the stock's value under these conditions. What are its expected dividend yield and its capital gains yield in Year 1 ? Year 4 ? a. g=30% b. g=0%

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