Question: Industries does not currently pay a dividend but expects to pay a $3 dividend in year 5 (t=5 on a timeline). The dividend will grow

Industries does not currently pay a dividend but expects to pay a $3 dividend in year 5 (t=5 on a timeline). The dividend will grow at 4 percent indefinitely. If the required return is 12 percent, what is the value of the stock at year 4 (t=4 on a timeline)?

stock has a sustainable growth rate of 2 percent, ROE of 10 percent, and dividends per share of $3.50. Similar companies have a PE ratio of 14. What is the companys expected share price?

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