Intro Samsung just paid an annual dividend of $3. The company has a required return of 10%. Part 1 If dividends are expected to be constant, what is the value of the stock? 30 Using the no-growth dividend discount model: D 3 R 0.1 Po = = Correct 1+ decimals Submit B Attempt 1/10 for 10 pts. = 30 Part 2 BAttempt 3/10 for 8 pts. You now think that dividends will grow by 6% from year to year. What is the value of the stock?

Intro Samsung just paid an annual dividend of $3. The company has a required return of 10%. Part 1 - 1 - Attempt 1/10 for 10 pts. If dividends are expected to be constant, what is the value of the stock? Correct Using the no-growth dividend discount model: P0=RD=0.13=30 Part 2 Attempt 3/10 for 8 pts. You now think that dividends will grow by 6% from year to year. What is the value of the stock