Question: Solve the problem. Show your work and equations! Please do not show screenshots of Excel as your work shown. 5. The company stock increases dividend

Solve the problem. Show your work and equations! Please do not show screenshots of Excel as your work shown.

5. The company stock increases dividend by 5% each year and the expected dividend in 5 years is $5. Analysts expect that investors would require 10% return on this stock. The company will cease paying dividend after the 5th dividend (dividend in year 5). That is, the firm will pay 5 dividends annually and from year 6 shareholders will not receive any further dividend. Find the share price today. Use annual compounding

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