Firm A is expected to pay $2 dividend next year The dividend will then grow by 10 for another two years After that, the dividend growth rate will decrease to 5 and last forever How much would you like to pay for this stock if your required rate of return is 7 Firm B just paid a dividend of $1 6 The dividend will grow by 3 for one year and 5 for another three years After that, the dividend growth rate will increase to 10 and last forever How much would you like to pay for this stock if your required rate of return is 12 Firm C just paid a dividend of $1 The dividend will grow by 6 for two years and 8 for another two years After that, the dividend will be constant forever How much would you like to pay for this stock if your required rate of return is 10 Firm D is expected to pay $1 dividend in one year This $1 dividend will keep constant for another three years and then grow by 5 forever How much would you like to pay for this stock if your required rate of return is 10 Firm E is expected to pay $3 dividend in one year This $3 dividend will keep constant for another two years and then grow by 5 for three years After that, the dividend will grow by 2 forever How much would you like to pay for this stock if your required rate of return is 6 Firm F is expected to pay $1 8 dividend in one year This $1 8 dividend will keep constant for another two years and then grow by 20 for three years After that, the dividend will keep constant again How much would you like to pay for this stock if your required rate of return is 9

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Question: Firm A is expected to pay $2 dividend next year. The dividend will then grow by 10% for another two years. After that, the dividend

Firm A is expected to pay $2 dividend next year. The dividend will then grow by 10% for another two years. After that, the dividend growth rate will decrease to 5% and last forever. How much would you like to pay for this stock if your required rate of return is 7%?

Firm B just paid a dividend of $1.6. The dividend will grow by 3% for one year and 5% for another three years. After that, the dividend growth rate will increase to 10% and last forever. How much would you like to pay for this stock if your required rate of return is 12%?

Firm C just paid a dividend of $1. The dividend will grow by 6% for two years and 8% for another two years. After that, the dividend will be constant forever. How much would you like to pay for this stock if your required rate of return is 10%?

Firm D is expected to pay $1 dividend in one year. This $1 dividend will keep constant for another three years and then grow by 5% forever. How much would you like to pay for this stock if your required rate of return is 10%?

Firm E is expected to pay $3 dividend in one year. This $3 dividend will keep constant for another two years and then grow by 5% for three years. After that, the dividend will grow by 2% forever. How much would you like to pay for this stock if your required rate of return is 6%?

Firm F is expected to pay $1.8 dividend in one year. This $1.8 dividend will keep constant for another two years and then grow by 20% for three years. After that, the dividend will keep constant again. How much would you like to pay for this stock if your required rate of return is 9%?

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