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In order to see exact numbers of your problem, please select your name in the Introduction tab first Color Coding Numbers given Numbers calculated automatically Student's Calculations/Answers Score (filled by professor) A firm is just about to pay its annual dividend. You expect that the dividend will be growing at high growth rate for few years and then the growth will stabilize at a sustainable rate. Growth rates, dividend and your required return are given below. a) What are the dividends during the high growth period and one year later? b) What is the share price at the end of high growth period? c) What is today's cum-dividend and ex-dividend price? d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? e) What are expected dividend yield and capital gains after the end of high growth period? If you don't see numbers in green cells, please go to the Introduction Tab and select your name from drop-down list Given Just paid dividend High growth rate High growth period Stable growth Required return $2.00 30% 3 years 4% 16% a) What are the dividends during the high growth period and one Score Soto Gordoa, Aline Viridiana Maximum 4 year later? 1 Div 1 2 Div 2 3 Div 3 4 Div 4 b) What is the share price at the end of high growth period? PI c) What is today's cum-dividend and ex-dividend price? Time Cash Flow PV Ex-dividend price Cum-dividend price d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? 4 Dividend Yield Capital Gains e) What are expected dividend yield and capital gains after the end of high growth period? 4 Dividend Yield Capital Gains In order to see exact numbers of your problem, please select your name in the Introduction tab first Color Coding Numbers given Numbers calculated automatically Student's Calculations/Answers Score (filled by professor) A firm is just about to pay its annual dividend. You expect that the dividend will be growing at high growth rate for few years and then the growth will stabilize at a sustainable rate. Growth rates, dividend and your required return are given below. a) What are the dividends during the high growth period and one year later? b) What is the share price at the end of high growth period? c) What is today's cum-dividend and ex-dividend price? d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? e) What are expected dividend yield and capital gains after the end of high growth period? If you don't see numbers in green cells, please go to the Introduction Tab and select your name from drop-down list Given Just paid dividend High growth rate High growth period Stable growth Required return $2.00 30% 3 years 4% 16% a) What are the dividends during the high growth period and one Score Soto Gordoa, Aline Viridiana Maximum 4 year later? 1 Div 1 2 Div 2 3 Div 3 4 Div 4 b) What is the share price at the end of high growth period? PI c) What is today's cum-dividend and ex-dividend price? Time Cash Flow PV Ex-dividend price Cum-dividend price d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? 4 Dividend Yield Capital Gains e) What are expected dividend yield and capital gains after the end of high growth period? 4 Dividend Yield Capital Gains

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