Lora Corp. anticipates a non-constant growth pattern for dividends. Dividends are expected to be $1.30 next year followed by a 15% growth rate until the end of year five. At this time dividends will grow at a 5% rate for the foreseeable future. Use a discount rate of 12% (Ke) throughout your analysis. Round all values that you compute to two places to the right of the decimal point. Calculate P_o

1. Show the table to calculate for PV (dividend from year 1 to year 5) (with 3 columns) 
2. Show PV (dividend for year 1 to year 5) 
3. Show formula to find the price at year 5 
4. Show work to find the price at year 5 
5. Present price for year 5 
6. Show formula to find the PV (price for year 5) 
7. Show work to find the price at year 5 
8. Present PV (price for year 5) 
9. Show work to the price of this stock 
10. Present price of this stock 

Answer rating: 100% (QA)

TABLE TO CALCULATE PVDIVIDENDS FROM YEAR 1 TO YEAR 5 Year Cash F... View the full answer