Using a BA II plus, rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and that each investor requires the same 12% expected return. Current dividends are $5.40.

What value would Dritter place on the stock and what about Zehnte who has a 10-year horizon?

PV Horizon (years) PV (Terminal Price) Value per Share (Dividends) 1 10 TABLE 7.4 Value of Blue Skies Horizon (years) + = WN- PV (dividends) $2.68 5.26 7.75 22.87 38.76 49.81 62.83 73.02 PV (terminal price) $72.32 69.74 67.25 52.13 36.24 25.19 12.17 1.98 Value per Share $75 75 75 75 75