FB Copy Format Painter BI U - A Merge & Ce Clipboard Font Alignment A56 X V fx O B C D E F G H 4 points Question 5a An analyst uses a two-stage variable growth model to estimate the value of Old Maid Company's common stock. $3.24 The most recent annual dividend paid by the company was $3 per share. The analyst expects dividends to increase $3.50 8% per year for the next 3 years and then drop to 4% starting in year 4 and remain stable for the foreseable future. $3.78 The required rate of return used for the analysis is 10% 3 9312 a) What are the expected dividends for the next 4 years? 58.24 b) What is the value of the stock attributable to the first 3 years of dividends? (use NPV function) 42 $3.50 c) What is the value of the stock at the end of year 3? (use constant-growth model) 43 $3.78 d) What is the value of the stock attributable to years 4 and beyond? (use pv function, where answer to part C is the fv) 44 $3.93 e) What is the total value of the stock? 45 4 points 46 Question 5b | Question Sc Question 5d |Question 5e $8.68 8 points $8.68 $65.50 $49.21 $57.89 49