Question: Do = $2 and g is a constant 4%. 0 g= 4% 3 1 + 2 + 2.1632 2.08 2.24973 1.9083 Is = 9% 1.8207

Do = $2 and g is a constant 4%. 0 g= 4% 3 1 + 2 + 2.1632 2.08 2.24973 1.9083 Is = 9% 1.8207 1.7372 L (10) The following questions are based on Chapter 9 lecture note. Assume that the dividend will grow at the rate of 5% (not g4%) in slide #11, but all other values are the same. a. Find the expected dividends stream for the next 4 years. b. Estimate the present value of this stock based on the Discounted Dividend Model (set N:4). c. Estimate the present value (PO) of this stock based on the Constant Growth Model d. Estimate the prices at t1 (P1) and t=2(P2) using the Constant Growth Model e. Find Divined yield, Capital gains yield, and Total return Solver a,b,c.de

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