PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

Problem 2: A firm can grow at a high rate of 12% for the next 5-years; and hence its dividends. It has an expected long-run constant dividend growth rate of 5%, and the most recent dividend Do, was $5.00. The required rate of return on the stock is 16%. Calculate the current price of the stock using "two-stage dividend growth model." Problem 3 : A firm can grow at a high rate of 10% for the next 4-years; and hence its dividends. The dividend growth rate falls gradually over next 4 years and reaches 4%.It has an expected long-run constant dividend growth rate of 4%, and the most recent dividend Do, was $3.00. The required rate of return on the stock is 12%. Calculate the current price of the stock using H-Model