Suppose it is now the end of year 2019 and cost of equity is 13% as indicated in cell B30.

(1) Given the annual dividend history from 2014-2019 below, calculate the compound annual growth rate of dividends. (5 points)

(2) Assume this growth rate will continue through years 2020-2024, which is the first stage. Calculate the expected dividend each year over 2020-2024 and their present values. (10 points. Hint: g1 is the number calculated in previous part.)

(3) Suppose that after 2024, the dividends are expected to grow at 2% (second-stage growth rate, as indicated in cell B32) per year, indefinitely. Calculate the expected dividend in 2025. (5 points)

(4) Calculate the expected stock price at the end of year 2024 and its present value at the end of year 2019 (assume today is the end of year 2019). (10 points)

(5) Calculate today's stock price at the end of year 2019. (5 points)

Year	Annual Dividends
2014	1
2015	1.15
2016	1.32
2017	1.52
2018	1.75
2019	1.91
Cost of Equity	13%
Second-stage Growth Rate (g2)	2%