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Z-Corp expects a $2 dividend next year with a 5% dividend growth rate. But due to its risky prole, Z-Corp has a 1.5 beta. What

Z-Corp expects a $2 dividend next year with a 5% dividend growth rate. But due to its risky prole, Z-Corp has a 1.5 beta. What price would you buy the stock? Assume 3% risk free rate and 9% for the market risk premium. Assuming the same discount rate you found above, what should the price of the stock price be 5 years from now? What do you think are the shortfalls of the dividend discount model? What other stock valuation methods could you use?

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