Question: Needs to be completed in Excel - Please show formulas/ how they were inputted into Excel WD stock will pay no dividends for four years.

Needs to be completed in Excel - Please show formulas/ how they were inputted into Excel

  1. WD stock will pay no dividends for four years. In year five it will pay a $5 dividend (DIV5 =5). The dividend will then grow at a 3% rate forever after that. The discount rate on WD stock is 10%. What is the present value of the stock price at time 4?

  2. SP stock will pay a $3 dividend next year (DIV1 = 3). The dividend will then grow at a 2% rate forever. The required rate of return on SP stock is 10%. What should be the price of SP stock?

  3. Carmine Co. stock will pay a $5 dividend next year (D1= $5). After next years dividend, the dividends will grow at a 4% rate for the following two years and then grow at a 3% rate forever. The required rate of return for the stock is 9%. What will be the price of Carmines stock in five years?

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