Microtech Corp. does not currently pay dividends. The company will start with a $1.00 dividend at the end of year three and grow it by 40% during years 4 and 5. After that, the company should grow at a constant rate of 8 percent per year forever. The required return on the stock is 15%.

What is the current stock price? Use the NPV function.

What is the expected stock price in years 1-5? Use the NPV function for years 1-4.

What dividend yield and capital gains yield should an investor expect to receive at the end of each year (1-5)?

Please show functions

A B C D E F G H I J K L M N O P Q R S T e Int. Rate 15% YRO YR1 YR21 YR 3 1 0 1.00 YR 4 .40 YR 5 0.40 YR 6 0.08 5 Growth Rate 5 Dividend Price at Yr 5 3 Total Cash Flows 0 3. What is the current stock price? Use the NPV function. YRO 2 Price = 4 4. What is the expected stock price in years 1-5? Use the NPV function for years 1-4. YR1 YR2 YR 3 YR 4 YR 5 8 5. What dividend yield and capital gains yield should an investor expect each year? 9 (Example: For year 0 yield, you buy the stock at year zero, receive the dividend at year 1 and sell the stock at year 1.) YRO YR1YR 2 YR 3 YR 4 YR 5 1 Dividend Yld 2 Cap Gains Yld Sheet1 Sheet2 Sheet3 teady 0 - 1 -+ 100%