Please do it in EXCEL and also show the formula that you do!

AFF 210 AssIGNMENT Two WINTER 2019 Problem One (20 marks) You are an analyst in charge of valuing common stocks. You have been asked to value two stocks. The first stock AB Inc. Jus paid a dividend of $4.50. The dividend is expected to increase by 60%. 40%, 30% and i 0% per year respectively in the next four years. Thereafter the dividend will increase by 4% per year in perpetuity The second stock is CD Inc. CD will pay its first dividend of $8 in 5 years. The dividend will increase by 40% per year for the following 3 years after its first dividend payment. Thereafter the dividend will increase by 3% per year in perpetuity. Both stocks have a required rate of return of 25% per year for the next 2 years, and thereafter the required rate of return will be 10%. a) Calculate AB's expected dividend for 1,2, 3, 4, and5. b) What is the current price of AB? c Calculate CD's expected dividend for t- I, 2, 3, 4, 5, 6, 7, 8 and 9, d) Whatis the current price of CD? Ryerson Page 2 of 7