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. Current dividends are $6.90. What value would Dritter place on the stock and what about Zehnte who has a 10-year horizon? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Value per Horizon (years) 1 PV (Dividends) PV (Terminal Price) Share 2. 3 10 TABLE 7.4 Value of Blue Skies Horizon (years) 2 3 10 20 30 50 100 PV (dividends) $2.68 5.26 7.75 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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