Answer Happy

Intro Walmart has just paid an annual dividend of $3.95. Dividends are expected to grow by 6% for the next 4 years, and then grow by 4% thereafter. Walmart has a required return of 7%. Part 1 What is the expected dividend in four years? 4.98677 Dividends during non-constant growth phase: D₁ Do(1+9₁) = 3.95 1.06 = 4.187 3.95 D2 Do(1 + 9₁)² = = 1.062 = 4.438 = D3 = Do(1 + 9₁)³ 3.95 1.06³ 4.705 D4 = Do(1 + 9₁)¹ = 3.95 · 1.064 = 4.987 = = Correct ✔ 0+ decimals = Part 2 What is the terminal value in four years (P4)? Attempt 2/10 for 10 pts. Attempt 3/10 for 5.2 pts.

Part 2 What is the terminal value in four years (P4)? 0+ decimals Submit Part 3 What is the value of the stock now? 0+ decimals Submit Attempt 3/10 for 5.2 pts. Attempt 1/10 for 5.2 pts.