Question $5$

You need to determine the value of a stock for a client using the Dividend Growth

Model. This is a publicly traded, seasoned company with a long history of paying

dividends. Your client requires a minimum return of $18\%.$ The most recent annual

dividend is $$2\mathrm{.}30.$ The dividend history is:

$$121\mathrm{.}87$

$$70\mathrm{.}13$

$$37\mathrm{.}14$

$$25\mathrm{.}33$