Question: need STEP BY STEP solution for these problems ! Variable Growth Model: Examples 1. A stock pays no dividends for the first 2 years and

need STEP BY STEP solution for these problems !  need STEP BY STEP solution for these problems ! Variable Growth
Model: Examples 1. A stock pays no dividends for the first 2

Variable Growth Model: Examples 1. A stock pays no dividends for the first 2 years and then pays a dividend of $2/share for ever. Discount rate is 10%. 2. A stock pays a dividend of $0.60 the first year, $0.80 the second, and $0.90 the third. It then will pay a constant dividend of $2 for ever. Discount rate is 16%. 3. Y corp expects dividends to grow very rapidly for the next 3 years at 30%. The growth rate will then be 8%. The required rate of return is 15%. The current dividend being paid is $1.50. Find the stock price. Start FIN352-03.pdf * X FIN352-04.pdf Variable Growth Model: Examples 4. A stock pays a dividend of $0.60 the first year, $0.80) the second year, and $0.90 the third year. The dividend is then expected to grow at a constant rate of 7% forever. The discount rate is 16%. Currently the stock is selling for $10.00. Should the investors buy this stock

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