Question: please help Rework Table 74 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase
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Rework Table 74 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and that each investor requires the same 12% expected return. The company will pay a dividend of $6.90 at the end of the first year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Horizon (years) 1 PV (Dividends) PV (Terminal Price) Value per Share 2 3 10 TABLE 7.4 Value of Blue Skies Horizon (years) PV (dividends) $2.68 PV (terminal price) $72.32 Value per Share $75 1 75 75 O WN 5.26 7.75 22.87 38.76 49.81 62.83 73.02 69.74 67.25 52.13 36.24 10 20 75 75 30 50 25.19 12.17 1.98 75 75 75 100
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