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Question 8 8 pts Montgomery Corp. has been paying dividends of $0.90 per share. Assume it has a cost of equity capital of 8.5%. Estimate

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Question 8 8 pts Montgomery Corp. has been paying dividends of $0.90 per share. Assume it has a cost of equity capital of 8.5%. Estimate the stock value per share of Montgomery Corp. using the dividend discount model (DDM) under each of the following separate assumptions: 1) The dividend will continue to stay at $0.90 per share in the future (3 pts) 2) The dividend will be $0.90 for the next two years, $0.95 for the third year with a growth of 5.5% per year thereafter. (5 pts) (Please show your calculations) 12ptParagraph

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