Intro

A stock just paid an annual dividend of $$4\mathrm{.}36.$ The dividend is expected to grow by $8\%$ per

year for the next $5$ years. It will then grow by $4\%$ per year forever.

The required rate of return is $11\%.$

Part $1$

Attempt $\frac{1}{10}$ for $8$ pts$.$

What is the dividend in year $5?$

Part $2$

What is the terminal value $(P_5)?$

Part $3$

What is the value of the stock?