Question: Problem 7-8 Dividend Discount Model (LO2) Rework Table 74 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the

Problem 7-8 Dividend Discount Model (LO2) 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 $6.60 at the end of the first year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Horizon (years) 1 2 3 10 PV PV (Terminal Value per (Dividends) Price) Share 5 89 s 104 11s 110.00 780 742 123.30 185 85 ie + Horizon (years) 1 2 13 110 20 30 50 100 PV (dividends) $2.68 5.26 7.775 22.87 38.76 49.81 62.83 73.02 PV (terminal price) $72.32 69.74 67.25 52.13 36.24 25.19 12.17 1.98 Value per Share $75 75 75 75 75 75 75 75

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