Kroger has just paid a quarterly dividend of $1. Growth this year is expected and dividends are forecasted to grow by 10% for the next 4 quarters, and then by 1.5% thereafter. Kroger has a required quarterly discount rate of 2%.

It would likely help to create a timeline below

Questions:

1. What is the expected dividend in four quarters?

2. What is the terminal value in Q4 for all dividends Q5 and beyond?

3. What is the current price of the stock according to the DDM (i.e. the PV of all cashflows on this timeline)?

Quater	1	2	3	4	5
Dividend	?	?	?	?	?