9. Williams Inc. PAID a $3 dividend YESTERDAY and that dividend is expected to grow at 4% every year thereafter. If the discount rate is 10%, what would be the present value of the expected dividend stream (aka the expected price of the rm's stock)? a. 52.00 b. 30.00 c. 0.50 d. 75.00 e. 50.00 Answer a, constant growth perpetuity valuation model = Yesterday's dividend level is used to estimate next period's dividend amount, which is then used in the constant growth valuation model, as shown below: Dl/(r-g) = need to calculate D1=D0*(1+g), P0 = price at time 0 =3(1.04)/(.1.04)= 52.00