Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and that each investor requires the same 12% expected return. The company will pay a dividend of $4.20 at the end of the first year.

Rework Table 7.4:

Problem:

TABLE 7.4 Value of Blue Skies. What value would an Investor place on the stock? Note: Do not round Intermedlate calculatlons. Round your answers to 2 declmal places. Answer is complete but not entirely correct