Year

Dividends($)

2003

2.89

2002

2.53

2001

2.22

2000

1.95

1999

1.71

1998

1.50

Fatema owns stock in a company that has paid the annual dividends shown in the table above.

A. Calculate the growth rate of these dividends.

B. Calculate the estimated dividend for 2004

C. The required return is assumed to be 17 percent. Using the Gordon model, calculate the per-share value of the stock.