Assume that the dividend will grow at the rate of 5% (not g=4%) in slide #11, but all other values are the same. 

a. Find the expected dividends stream for the next 4 years.

b. Estimate the present value of this stock based on the Discounted Dividend Model (set N=4). 

c. Estimate the present value ((P_0 ) ?) of this stock based on the Constant Growth Model. 

D. Estimate the prices at t=1 ((P_1 ) ?) and t=2 ((P_2 ) ?) using the Constant Growth Model. 

E. Find Divined yield, Capital gains yield, and Total return. 

Find the Expected Dividend Stream for the Next 3 Years and Their PVs Do = $2 and g is a constant 4%. 0 g = 4% 1.9083 1.8207 1.7372 1 2.08 rs = 9% 2 + 2.1632 3 2.24973