Problem $12$

Intro

A stock just paid an annual dividend of $$4\mathrm{.}44.$ The dividend is expected to grow

by $11\%$ per year for the next $5$ years. It will then grow by $3\%$ per year forever.

The required rate of return is $11\%.$

Part $1$

Attempt $\frac{1}{10}$ for $10$ pts$.$

What is the dividend in year $5?$

Part $2$

Attempt $\frac{1}{10}$ for $10$ pts$.$

What is the terminal value $(P_5)?$

Part $3$

Attempt $\frac{1}{10}$ for $10$ pts$.$

What is the value of the stock?