Using a dividend discount model, what is the true value of a stock that will pay a dividend of $3.00 one year from now. Assume that during the first stage the dividend grows at 100% for 3 years, so the end of stage one is t=3. In the second stage you expect the company to grow at 4% for the rest of its life. Use a discount rate of 20%. O $55.50 O $61.78 O $65.90 O $58.75 Using a dividend discount model, what is the true value of a stock that just paid a dividend of $2.30 (Do). Assume that during the first stage the dividend grows at 80% for 4 years, so the end of stage one is t=4. In the second stage you expect the company to grow at 5% for the rest of its life. Use a discount rate of 19%. O $92.12 O $80.01 O $119.04 $87.65