I have the questions 1-3 figured out, but would appreciate it if my answers could be checked so I know if I am on the right track. I need help with question 4 and the formulas to use for all four questions in Excel 2010. ,,Thank you.,,1. Stock. What is the value of a stock with a,a. $2 dividend just paid and an 8% required return with 0% growth?, 2/0.08 = $25,b. $3 dividend just paid and a 9% required return with 1% growth?, 3(1+0.01)/0.09-0.01=3.03/0.08=$37.88,c. $4 dividend to be paid and a 10% required return with 2% growth?, 4(1+0.02)/0.10-0.02=4.08/.08=$51,d. $5 dividend to be paid and a 11% required return with 3% growth?, 5(1+0.03)/0.11-0.03=5.15/0.08=$64.38,,2. Stock. What is the required rate of return on a stock with a,a. $1.5 expected dividend and a $19 price with 7% growth?, R=1.5/19 + 0.07 = 0.0789+0.07 = 0.1489 or 14.89%,b. $1.75 expected dividend and a $25 price with 8% growth?, R=1.75/25+0.08=0.15 or 15%,c. $2 expected dividend and a $26 price with 9% growth?, R=2/26+0.09=0.1669 or 16.69%,d. $2.25 expected dividend and a $33 price with 10% growth?, R=2.25/33+0.10=0.1682 or 16.82%,,3. Stock. What is the growth rate of the stock with a,a. $2.50 expected dividend and a $30.60 price with 15% required return?, G=0.15-(2.5/30.60)=0.15-0.0817= 0.0683 or 6.83%,b. $2 expected dividend and a $25.35 price with 12% required return?, G=0.12-(2/25.35)=0.12-0.0789=0.0411 or 4.11%,c. $3 expected dividend and a $10.40 price with 11% required return?, G=0.11-(3/10.40)=0.11-0.2885= – 0.1785 or (17.85%),d. $1.77 expected dividend and a $50.20 price with 14% required return?, G=0.14-(1.77/50.20)=0.14-0.0353=0.1047 or 10.47%,,4. Stock price. What is the value of a stock with high growth then constant growth,,a. dividends of $1.50, $3.00, and $6.00, constant growth at 4% and a required return of 6%?,b. dividends of $2.50, $3.50, and $5.00, constant growth at 3.5% and a required return of 8%?,c. dividends of $1.50, $3.00, and $6.00, constant growth at 5% and a required return of 10%?,d. dividends of $2.50, $3.50, and $5.00, constant growth at 7% and a required return of 12%?,

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