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Recent Dividend (say, yesterday) Growth rate of dividends Stockholder's Required Return 2.19 2.6% 9.4% Suppose you created a time line of dividends: 2.19 1. Today,

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Recent Dividend (say, yesterday) Growth rate of dividends Stockholder's Required Return 2.19 2.6% 9.4% Suppose you created a time line of dividends: 2.19 1. Today, what is the present value of all the remaining dividends? Assume the dividends go (and grow) forever. A Between 25.00 and 50.00 B Between 50.00 and 70.00 C Between 70.00 and 90.00 D Between 90.00 and 110.00 2 3 4 2. Suppose a year has gone by. Now what is the value of all the 5 remaining dividends? Again, assume dividends go (and grow) forever. 5 A Between 30.00 and 55.00 7 B Between 55.00 and 75.00 8 C Between 75.00 and 95.00 9 D Between 95.00 and 130.00 0 51

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