Question: a) Place your final answer here: Show your work below for full marks D 0 Current Value: D1 P 0 = D1/(r-g) r s P
| a) | Place your final answer here: | ||||||||||||
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| Show your work below for full marks | |||||||||||||
| D0 | Current Value: | ||||||||||||
| D1 | P0= | D1/(r-g) | |||||||||||
| rs | P0= | ||||||||||||
| g | |||||||||||||
| b) | Place your final answer here: | $0.00 | |||||||||||
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| Show your work below for full marks | |||||||||||||
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| 0 | g1 = | g2= | |||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | ||||||||
| D1 | |||||||||||||
| 2.15 | D2 | D3 | D4 | ||||||||||
| PV | |||||||||||||
| D1 = | |||||||||||||
| D2 = | Price using constant growth from year 3 onward: | ||||||||||||
| D3 = | P3 = | D4 / (r-g) | |||||||||||
| PV of P3 = | | P3 = | |||||||||||
| Stock Value = P0= | |||||||||||||
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