part 1/2

A stock just paid an annual dividend of $2.8. The dividend is expected to grow by 10% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.75% per year, from 10% in year 4 to 3% in year 8 and stay at that level forever. The required rate of return is 12%. IB Attempt 1/10 for 1.5 pts. Part 1 What is the expected dividend in 8 years? 1+ decimals Submit JB Attempt 1/10 for 1.5 pts. Part 2 What is the intrinsic value of the stock in 8 years