A stock is expected to pay its first annual dividend in 5 years. The dividend is expected to stay constant at $1.9 per year for 18 years and then grow at 5% annually forever. The required rate of return is 14%. (hint: non-standard dividends; two-stage of dividends) B Attempt 6/10 for 1 pts. Part 1 What is the PV today of the first-stage dividends? (18 years of constant $1.9 dividend per year is the first stage) 2+ decimals Submit Part 2 BAttempt 2/10 for 9 pts. What is the PV today of the second-stage dividends? (dividends after the 18 years of constant dividend is the second stage) 2+ decimals Submit Part 3 What should be the stock price now? B Attempt 1/10 for 10 pts.

A stock is expected to pay its first annual dividend in 5 years. The dividend is expected to stay constant at $1.9 per year for 18 years and then grow at 5% annually forever. The required rate of return is 14%. (hint: non-standard dividends; two-stage of dividends) Part 1 Attempt 6/10 for 1 pts. What is the PV today of the first-stage dividends? (18 years of constant $1.9 dividend per year is the first stage) Part 2 Attempt 2/10 for 9 pts. What is the PV today of the second-stage dividends? (dividends after the 18 years of constant dividend is the second stage) Part 3 Attempt 1/10 for 10 pts. What should be the stock price now