Question: 1 . ( 4 points ) Vincent Nguyen, an analyst, is examining the stock of Celestial Airways ( CAY ) as of the beginning of

1.(4 points) Vincent Nguyen, an analyst, is examining the stock of Celestial Airways (CAY) as of the beginning of 2008. He notices that the consensus forecast by analysts is that the stock will pay a dividend of $ 4 per share at the end of 2009 and $5 at the end of 2010. Nguyen expects the price of the stock to be $250 at the end of 2010. He has estimated the required rate of return to be 11%. a. Using the dividend discount model, estimate the value of the stock at the end of 2009. b. Using the dividend discount model, estimate the value of the stock at the end of 2008

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