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Section II: Stock Valuation (a) Calculate Stock Prices for each of these scenario: - If the required return is 12% and a company pays an

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Section II: Stock Valuation (a) Calculate Stock Prices for each of these scenario: - If the required return is 12% and a company pays an annual dividend of $1.75 that is not expected to grow, how much is the stock worth? - If the dividend of $1.75 per share is expected to grow at a constant rate of 3% per year. And the required return is 12% - If year 1 firm pays dividend $1.00, year 2 pays $1.75, and from year 3 onwards dividends are expected to grow at a constant rate of 4% per year. - If dividend of $1 today and is expected to grow at a rate of 4% for the next three years, and then continue to grow at 3% forever. (b) Name any 2 market indices and describe their purpose (c) Name one growth stock that is being traded in the stock market right now and show your selection methodology. (d) Name one value stock that is being traded in the stock market right now and show your selection methodology

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