- Question #2: (3 points) Calculate all the factors on this worksheet - show work and insert fomulas where needed. The dividend increases by 10% per year. Your required rate of return is 12.0 %, What is Net present value of the stock? Your PGR is 4.0% Your savings rate is 6.0%. What is the net present value of the stock based on the dividend payments.? Discount Period Current year Present Value 0.89 0.88 Expected dividend: $ 1.00 $ 1.10 $ 1.21 $ 1.33 $ 1.46 $ 1.46 year 2 Year 3 year 4 year 5 Discount Factor Terminal Value 1 $ 0.89 2 $ 0.80 3 $ 0.71 4 $ 0.64 5 $ 0.57 $ 0.57 0.86 0.85 0.83 Terminal year 18.30 $ 10.38 Net Present Value 14.69