plese show the culcolate method for 1,2 Q and explain for 3 Q
1What is the value of a stock if the current dividend is $2, the growth rate is 5%, and the required return is 10%?
$40
$22
$26
$42
2What is the value of a stock that you believe will sell in three years for $81 a share and will pay $3.00 in dividends every year for the three-year period assuming your required return is 10%?
$68.32
$90.00
$81.37
$91.25
3The recommended model to estimate the cost of common equity for a firm is
A one-stage constant growth model.
A multistage growth model.
The CAPM.
Zero growth model