Question
please do in excel question 12 a. A company paid a dividend of $5 last year. It is expected that the compnay will grow at
please do in excel
question 12
a. A company paid a dividend of $5 last year. It is expected that the compnay will grow at a rate of 10% over the next 5 years and then at a rate of 4% thereafter. What is the PV of all the dividends earned over 5 years?
b. A company paid a dividend of $5 last year. It is expected that the compnay will grow at a rate of 10% over the next 5 years and then at a rate of 4% thereafter. The required rate of return for this stock is 15%. What is the fair price of this stock at the end of 5 year?
c. What is the PV of the fair price that you calculated in part b above?
d. What is the fair price or the PV of the stock today?
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