Intro

Walmart has just paid an annual dividend of $$3\mathrm{.}6.$ Dividends are expected to grow

by $7\%$ for the next $4$ years, and then grow by $5\%$ thereafter. Walmart has a

required return of $6\%.$

Part $1$

What is the expected dividend in four years?

Part $2$

What is the terminal value in four years $(P_4)?$

Part $3$

What is the value of the stock now?