Problem:
Suppose a company paid $4.70 per share as a dividend on last Friday. The investors expect the dividend to grow at a constant rate of 6%(g) per year,and their required rate of return(Ks) is 14%
1) Calculate the expected dividends for each of the next 5 years
2) Calculate the intrinsic value (Po) of the stock
3) Do the same as in part (2) above, but suppose the stock's dividend will not grow at all ( g equals to zero)