Company A is fast growing for the next few years, before more moderate expectations from year 5 forward. The company has the following expected dividends for years 1-4, respectively, $2, $2.50, $3, and $3.25, after that time dividends are expected to grow at 5% in perpetuity. If you have determined the appropriate equity discount rate is 10%, what is the estimated value of the stock in year 4 (i.e., the Terminal Value)? Group of answer choices

a. $34.13

b. $68.25

c. $32.50

d. $75.67

From the abovequestion, what is the present value of the stock today?

Group of answer choices

a. $54.97

b. $46.62

c. $48.36

d. $32.50