Question

Really need help with this, thanks. Round to 2 decimals

"A stock just paid a dividend of $2.18. The dividend is expected to grow at 20.21% for three years and then grow at 4.97% thereafter. The required return on the stock is 11.85%. What is the value of the stock?

A stock just paid a dividend of $1.82. The dividend is expected to grow at 27.55% for five years and then grow at 3.60% thereafter. The required return on the stock is 12.23%. What is the value of the stock?"

Answer 1

	Required rate=	11.85%
Year	Previous year dividend	Dividend growth rate	Dividend current year	Horizon value	Total Value	Discount factor	Discounted value
1	2.18	20.21%	2.620578		2.620578	1.1185	2.3429
2	2.620578	20.21%	3.150196814		3.150196814	1.25104225	2.51806
3	3.150196814	20.21%	3.78685159	57.777	61.56385159	1.399290757	43.99647
	Long term growth rate (given)=	4.97%			Value of Stock =	Sum of discounted value =	48.86
Where
Current dividend =Previous year dividend*(1+growth rate)^corresponding year
Total value = Dividend + horizon value (only for last year)
Horizon value = Dividend Current year 3 *(1+long term growth rate)/( Required rate-long term growth rate)
Discount factor=(1+ Required rate)^corresponding period
Discounted value=total value/discount factor

Please ask remaining parts seperately, questions are unrelated