Year 3 Dividend, D 4 Supemormal growth rate, g S Normal growth rate, 6 Required retum, 7 B Dividends 10 P 11 Cash flows to common stockholders 12 13 PV of cash flows to common stockholder 14 Stock Price, P 15 26 Atamatively using Excel NPV function 17 Stock Price, P 18 19 20 Formulas 21 22 23 Dividends 24 P 25 Cash flows to common stockholders 26 27 PV of cash flows to common stockholders 28 Stock Price, Py 29 30 Alematively using Excel NPV function 31 Stock Price, P 32 33 B $1.00 31.00% 10.00% 16.00% SLA SNA D 0 0 A $1.00 $1.0000 SINIA 31.00% 31.00% NA TA ANA 31.00% 31.00% NA NA A SNA 10.00% 10.00% SNOW