You are analyzing a stock that has the following projected cash flows for years 1-5:

t = 1	t =2	t = 3	t = 4	t = 5	t = 6
1.2	2.34	3.33	4.95	5.01	?

After year 5, dividends are expected to grow at 2% and the company has a discount rate of 4%.

Q1. Use the =NPV function to compute the NPV of the cashflows in period 1-5 below. Verify that you get the same answer by using the CF & NPV buttons on your calculator.

Q2: What is the expected dividend payment in year 6?

Q3: What is the total discount value of dividend payments from t=6 onwards in t=5?

Q4: What is the current price of the stock according to the DDM (i.e. the PV of all cashflows on this timeline)?