Intro

Microsoft paid the following annual dividends over the last $5$ years:

The next dividend is expected $12$ months from now.

Part $1$

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

Based on the historical dividends, what is the expected growth rate of dividends?

Part $2$

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

If you can expect a return of $8\%$ from investments of similar risk, what is the intrinsic value of

the stock?

Part $3$

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

If you can expect a return of $14\%$ from investments of similar risk, what is the intrinsic value

of the stock?