To determine the expected market value (or intrinsic value) of any asset, we need to know just three things. Which of the following statements are not correct with respect to what is needed to determine value?

Multiple Choice

• Need to know the size of the expected future cash flows

• Need to know the discount rate to apply to the expected future cash flows

• Need to know the rate of inflation to apply to the expected future cash flows

• Need to know the timing of the expected future cash flows

Spooner Corporation's next dividend is expected to be $6. Dividend growth is estimated at 25%, 20%, 10% and then stabilize to 3%. If the rate of return is 10%, determine the stock price today.

Multiple Choice

• $95.82

• $95.42

• $96.12

• $95.12

• $124.67