Not sure how to calculate this, please help. Consider a firm that is expected to pay the following dividends: Year 1 2 3 4 5 6 $1.20 $1.20 $1.50 $1.50 $1.75 $1.90 And grow at 5% thereafter A. Using an 11 percent discount rate, what would be the value of this stock? B. What is the value of the stock using a 10 percent discount rate? A 12 percent discount rate? C. What would the value be using a 6 percent growth rate after Year 6 instead of the 5 percent rate using each of these three discount rates? D. What do you conclude about stock valuation and its assumptions? Year 1 2 3 4 5 6 And grow $1.20 $1.20 $1.50 $1.50 $1.75 $1.90 at 5% thereafter.

1. Not sure how to calculate this, please help.
Consider a firm that is expected to pay the following dividends:
Year
1
2
3
4
5
6
$1.20
$1.20
$1.50
$1.50
$1.75
$1.90
And grow at 5% thereafter
A. Using an 11 percent discount rate, what would be the value of this stock?
B. What is the value of the stock using a 10 percent discount rate? A 12 percent discount rate?
C. What would the value be using a 6 percent growth rate after Year 6 instead of the 5 percent
rate using each of these three discount rates?
D. What do you conclude about stock valuation and its assumptions?
Year 1 2 3 4 5 6
$1.20 $1.20 $1.50 $1.50 $1.75 $1.90
And grow
at 5%
thereafter