Please help! I don't know how to find the PV for the dividends.

Finance 431

Stock Valuation Assignment # 2

In this problem, you are going to calculate the present value of the stock of Clorox Company. As you did last week, assume the risk-free rate is 2% and the market risk premium is 6%. The current stock price for Clorox Company (CLX) is $180.07. In this problem, you are to determine if the stock at $180.07 is over or under-valued based on the intrinsic value you compute. Beta is 0.45. Dividends is 5.00, Dividends in 5 years is 7.00%. Earning per share is 8.40, Earnings in 5 years is 8.5%.

Using the examples covered in class, calculate the present value of the dividend and present value of the stock price for Clorox Company using the data provided on the Value Line sheet for Clorox