A stock just paid an annual dividend of $3.47. The dividend is expected to grow by 9% per year for the next 5 years. It will then grow by 1% per year forever. The required rate of return is 11%.

Part 1 What is the dividend in year 5? Submit Attempt 1/10 for 9 pts.

Part 2 What is the terminal value ( P 5 )? Submit Attempt 1/10 for 9 pts.

Part 3 What is the value of the stock?