Question: show EXCEL solution and DETAILED explanation for this A common stock pays a $2 dividend last year and is expected to pay cash dividend each

show EXCEL solution and DETAILED explanation for this

A common stock pays a $2 dividend last year and is expected to pay cash dividend each year thereafter.

Each year, the dividends are expected to grow at a rate of 10% and investor's required rate of return is 15%.

A. WHAT IS D1 = ?

B. WHAT IS Vcs = ?

C. ASSUME THAT THE current market value of CS is $44.51, WHAT IS THE expected kcs = ?

ANSWER:

A. 2.20

B. 44

C. 14.94%

show EXCEL solution and DETAILED explanation for this

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