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Scenario C - common stock: Most recent historical dividend ( at year 0 ) = $ 1 . 0 0 ( distributed before purchase

Scenario C-common stock:
Most recent historical dividend (at "year 0")=$1.00(distributed before purchase)
Expected growth rate of dividends =10% until end of year 5
Dividend Payout Ratio =45% at end of year 5
EPS= at end of year 5
PE (Price to Earnings) ratio expected at end of year 5=4.0 times
Required rate of return =8%
Selling price = at end of year 5
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