Caterpillar stock (CAT)

1. What are the dividends for the year 2020, 2021, and 2023 to 2025? (Collected from value line survey)

2. Assuming that dividend per share will have a supernormal growth from 2020 to 2021 and the dividend will have a constant growth starting at the year 2022, Estimate the value of your stocks on January 2, 2020. You can use the required rate of return computed in question 17 for your calculations. (Hint: use the steps for a stock with nonconstant growth). (Question 17 answer: market return 11.55%, risk-free rate 2.465%, Beta of 1.08, required rate of return 12.28%).