What is the present value of the expected dividends

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Scotts Dairy stock sells for $20 per share, and the most recent dividend was $1. An analyst using the three-stage growth model estimated that the high growth rate of 10% will only last for 2 years before it declines to a constant long-run normal growth rate of 7% over a three-year transition period.

using the h-model:

a. what is the present value of the expected dividends for Scotts Dairy?

b. what is the expected return?

c. what is the alpha?

Reference no: EM131452633

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