Question: Expected Growth for the NEXT TWO (2) years 18.0000% Expected Growth in the THIRD (3) year 12.0000% Constant Growth in Year FOUR (4) and thereafter

Expected Growth for the NEXT TWO (2) years 18.0000%

Expected Growth in the THIRD (3) year 12.0000%

Constant Growth in Year FOUR (4) and thereafter 7.0000%

LAST dividend PAID $2.25

REQUIRED rate of return 11.0000%

  • CALCULATE the $VALUE of the STOCK as of TODAY
  • CALCULATE the DIVIDEND YIELD and CAPITAL GAINS YIELD at TIME 0
  • CALCULATE the DIVIDEND YIELD and CAPITAL GAINS YIELD at TIME 3

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