PLEASE SHOW ANSWER IN EXCEL You are planning to buy a stock that has just paid a dividend (D 0 ) of $2 2 In addition, you anticipate the following growth rates Year 1 122 Year 2 76 Year 3 26 Year 4 0 Year 5 19 Years 6 through infinity 4 Assume a discount rate of 8 Based on this, what is the value o...

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PLEASE SHOW ANSWER IN EXCEL You are planning to buy a stock that has just paid a dividend (D 0 ) of $2.2. In addition,

PLEASE SHOW ANSWER IN EXCEL

You are planning to buy a stock that has just paid a dividend (D₀) of $2.2. In addition, you anticipate the following growth rates:

Year 1 = 122%
Year 2 = 76%
Year 3 = -26%
Year 4 = 0%
Year 5 = 19%
Years 6 through infinity = 4%

Assume a discount rate of 8%. Based on this, what is the value of the stock today? (Round all dividend and price calculations to the nearest cent).

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