Stocks in the United States usually pay quarterly dividends. For example, the retailer Wal-Mart Stores paid a $0.49 dividend every quarter over the 2015 calendar year and plans to pay a $0.50 dividend every quarter over the 2016 calendar year. Using the dividend discount model and net present value techniques, calculate the stock price of Wal-Mart Stores assuming that: The time now is the beginning of January 2016. The next dividend of $0.50 will be received in 3 months (end of March 2016), with another 3 quarterly payments of $0.50 after this (end of June, September and December 2016) The quarterly dividend will increase by 2% every year, but each quarterly dividend over the year will be equal. So each quarterly dividend paid in 2017 will be $0.510.50 x (1 0.02)), with the first at the end of March 2017 and the last at the end of December 2017. In 2018 each quarterly dividend will be $0.5202 ( 0.5 x (1 0.02)2), with the first at the end of March 2018 and the last at the end of December 2018, and so on forever. The total required return on equity is 6% pa. . The required return and growth rate are given as effective annual rates. * Dividend payment dates and ex-dividend dates are at the same time. *Remember that there are 4 quarters in a year and 3 months in a quarter