Calculate the dividends in year 4

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Problem: Suppose you have come up with the following dividends forecasts for the next three years. After the 3d year, the dividend will grow at a constant rate of 10% per year and the interest rate is 15%. Year 1 - expected dividend $1, year 2 - expected dividend $2, year 3 - expected dividend $4.

Questions: 1) Calculate the dividends in year 4 (D4)

2) Calculate the price in year 3 (P3)

3) Calculate the stock's price today (Po)

Reference no: EM132433984

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