Use the averaged cost of equity from Part III (viii) as the company's cost of equity for the following: Please come up w

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answerhappygod
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Use the averaged cost of equity from Part III (viii) as the company's cost of equity for the following: Please come up w

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Use the averaged cost of equity from Part III (viii) as thecompany's cost of equity for the following: Please come up with thevaluation of the stock in each of the following three scenarios: 1.Zero-growth dividends: Assume that annual dividends in the futurewill stay the same and not grow larger than the sum of allquarterly dividends in 2021. 2. Constant-growth dividends: pleaseestimate the price of the stock for each of the following possiblegrowth rates of the dividends: 1%, 2%, 3%, 4%, and 5%. Whichconstant growth rate yields the valuation that is closest to themarket price? 3. Non-constant growth dividends: Assume thatdividends will grow at the rate calculated in Part III (iii) forthe next two years and then come down to a lower growth rate,thereafter. Estimate the price using the following second-stagegrowth rate: 2%. In which scenario is the price you calculatedclosest to the market price? Which scenario do you think is mostapplicable for the company?
AVERAGE COST OF EQUITY: 0.07100122208
Current Quarterly Dividends 2021:
Projected Dividend Growth Rate 2022: 1.734215836
Current Price of Stock: 58.33
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