no excel please explain everything

Question 2. Stock valuation (25 marks) a). You are an analyst with a big Wall Street firm in charge of valuing high-tech firms. You are currently analyzing a firm called Dalvi.com that specializes in pretending to make money. Dalvi.com is not currently profitable, but they have convinced you that they will eventually make money. Your projections, therefore, are that the firm will pay no dividends for the next 10 years. Eleven years from now, you expect its first dividend of $2 per share. Further, you expect dividends to increase at a rate of 25% per year for 3 years after that. At that point, you will then expect dividends to grow at 9% per year thereafter. If the stock is presently trading at $15 and you believe that a required rate return for this type of company is 14%, based on your estimated price and the current price, should you buy the stock? (10 marks) b). Mylex Inc has just released an improved version of its popular sporting product and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for the next four years. Competition in the product market is expected to drive down profit margins, and hence the sustainable growth rate will fall to 5% after four years. The most recent (i.e. year 0) earnings were $4 per share. The firm has a dividend payout ratio of 25% and its discount rate is 10%. i) What is the value of the stock price today? (9 marks) ii) What is the expected stock price four years from now? (2 marks) iii) If you decide to hold the stock for one year, at what price can you sell the stock? (2 marks) iv) If you buy the stock now and sell it in 1 year, what will be your rate of return? (2 marks) Question 2. Stock valuation (25 marks) a). You are an analyst with a big Wall Street firm in charge of valuing high-tech firms. You are currently analyzing a firm called Dalvi.com that specializes in pretending to make money. Dalvi.com is not currently profitable, but they have convinced you that they will eventually make money. Your projections, therefore, are that the firm will pay no dividends for the next 10 years. Eleven years from now, you expect its first dividend of $2 per share. Further, you expect dividends to increase at a rate of 25% per year for 3 years after that. At that point, you will then expect dividends to grow at 9% per year thereafter. If the stock is presently trading at $15 and you believe that a required rate return for this type of company is 14%, based on your estimated price and the current price, should you buy the stock? (10 marks) b). Mylex Inc has just released an improved version of its popular sporting product and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for the next four years. Competition in the product market is expected to drive down profit margins, and hence the sustainable growth rate will fall to 5% after four years. The most recent (i.e. year 0) earnings were $4 per share. The firm has a dividend payout ratio of 25% and its discount rate is 10%. i) What is the value of the stock price today? (9 marks) ii) What is the expected stock price four years from now? (2 marks) iii) If you decide to hold the stock for one year, at what price can you sell the stock? (2 marks) iv) If you buy the stock now and sell it in 1 year, what will be your rate of return? (2 marks)