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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

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.

What value would Dritter place on the stock and what about Zehnte who has a 10-year horizon? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

EDIT: Someone said this is not the complete question but this is all of the information given. The table is here as well as the full question.

Horizon (years) PV (Dividends) PV (Terminal Price) Value per Share
1
2
3
10

image text in transcribed

TABLE 7.4 Value of Blue Skies Horizon (years) + = WN- PV (dividends) $2.68 5.26 7.75 22.87 38.76 49.81 62.83 73.02 PV (terminal price) $72.32 69.74 67.25 52.13 36.24 25.19 12.17 1.98 Value per Share $75 75 75 75 75 TABLE 7.4 Value of Blue Skies Horizon (years) + = WN- PV (dividends) $2.68 5.26 7.75 22.87 38.76 49.81 62.83 73.02 PV (terminal price) $72.32 69.74 67.25 52.13 36.24 25.19 12.17 1.98 Value per Share $75 75 75 75 75

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