Question: Problem Set 2 Name: Student ID: 1. Nonconstant Dividends McCabe Corporation is expected to pay the following dividends over the next four years: $15,

Problem Set 2 Name: Student ID: 1. Nonconstant Dividends McCabe Corporation is

Problem Set 2 Name: Student ID: 1. Nonconstant Dividends McCabe Corporation is expected to pay the following dividends over the next four years: $15, $11, $9, and $2.95. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 9 percent, what is the current share price? (10%)

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