Canva Ltd. just recently paid cash dividends of $5 per share. Assuming that the cost of equity is 15%, then calculate:

1. The stock price if the dividends will never change!

2. The stock price if the dividends will grow by 5% forever!

3. The dividends are projected for $10 in year 1, $15 in year 2, $20 in year 3, and grow 5% forever in year 4 and afterward

analyze The Risk and Return, Valuation of Stock and Bonds