6

The terminal value of a stock that is expected to grow its dividends at a constant rate after year 3 must be excluded from any calculation of the value of the stock. added to the present value of its dividends for the first 3 years. converted to its present value by discounting it by 3 years, and then added to the present value of its dividends for the first 4 years. converted to its present value by discounting it by 4 years, and then added to the present value of its dividends for the first 3 years. converted to its present value by discounting it by 3 years and then added to the present value of its dividends for the first 3 years