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Part B: Quarterly Dividends Required Rate of Return (APR): Most recent quarterly dividend: Compounding periods per year (m) Periodic RRR: 7.2% 2.10 4 3 Calculate

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Part B: Quarterly Dividends Required Rate of Return (APR): Most recent quarterly dividend: Compounding periods per year (m) Periodic RRR: 7.2% 2.10 4 3 Calculate the Estimated Stock price Under the Non-growth assumption. Assume dividends are paid quarterly. 2.10 D1 dividend: Estimated Price: 4 Calculate the Estimated Stock price under the Constant-growth assumption. Assume dividends are paid quarterly 2.8% Assume the (APR) constant growth rate (g) is: Periodic growth rate (g): D1 dividend Estimated Price: If the growth rate (g) were higher the value of the stock would be: higher

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