-ox Do Homework -Kenzie Hagerty - Google Chrome mathxl.com/Student/PlayerHomework.aspx?homeworkld=5515212128_questionld=7&flushed=false&cld=5791648¢erwin=yes Principles of Finance Section W01 Spring Semester 2020 Kenzie Hagerty : | 02/29/20 10:39 AM Homework: Homework 8 Save Score: 0 of 17 pts 9 of 9 (7 complete) HW Score: 63%, 63 of 100 pts Instructor-created question Question Help G-2 Inc. expects the following dividend pattern over the next seven years: Year 1 Year 2 Year 3 Year 4 Year 5 $1.00 $1.04 $1.08 $1.12 $1.16 2 Year 6 $1.21 Year 7 $1.27 The company will then have a constant dividend of $1.32 forever. What is the price of this stock today (year 0) if an investor wants to earn 16% rate of return? The stock price is $ (Round to two decimal places.) Problems #10 and #27 present similar type of problems like this. These problems combine different cases of dividend patterns (variations of dividend pricing models). There are 4 cases (variations) presented in this chapter. These cases are presented in page 11 of LN-7 and video V2 and same cases are presented with formulas to use in page 12 of LN-7 and video V3. Examples of each of these cases (separately) are presented in video 3 and pages 14-19 of LN-7. These topics are covered throughtout Ch 7. Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer . o r a 10 22072020