Question: Problem 2. You expect a stock to pay the following dividends in the future: 4 1 $1 2 $2 3 $4.20 $3.15 After year 4,

Problem 2. You expect a stock to pay the following dividends

Problem 2. You expect a stock to pay the following dividends in the future: 4 1 $1 2 $2 3 $4.20 $3.15 After year 4, you expect the dividend to grow at a constant rate of 3% forever. The terminal value is: The terminal value is true at time The PV of the terminal value is The PV of all the expected future CFs from the stock is

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