1 WN - 4 5 6 7 a) 3 marks Place your final answer here: Summit Mountain Climbing Supplies Ltd. just paid a cash dividend of $ 1.90. Investors want a 8.25% return. If the dividend is expected to grow at a steady 4.5% per year, what is the current value of the stock? Show your work below for full marks D. Current Value: D1 Po=D1/(r-9) Is Po 9 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6 marks Place our final answer here: Develop a current stock value for a firm that is expected to have extraordinary growth of 18% for four years, after which it will face more competition and slip into a constant growth rate of 6%. Its required return is 9.25% and next year's dividend is expected to be $2.15. Show your work below for full marks r= 0 92= 9. = 2 1 4 D D2 D DAI DS 25 26 27 PV D. = 28 D2= D,= 29 Price using constant growth from year 3 onward: P4= D5/(-9) P4= 30 D4= PV of P4= 31 32 33 Stock Value = P = 34 35 36 37 38 39 40 41