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Bull Dog Pretzels will pay an annual dividend of $0.95 one year from now. Analysts expect this dividend to grow at 6% per year for

  1. Bull Dog Pretzels will pay an annual dividend of $0.95 one year from now. Analysts expect this dividend to grow at 6% per year for three years. Thereafter, growth will slow down to 2% per year and remain there for the foreseeable future.
    1. What dividend will the company pay in each of the first 5 years?
    2. According to the dividend discount model, what is the value of a share of Bull Dog Pretzels stock today if the firms cost of equity capital is 9.0%?

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