Common stock valuation: Variable Growth. In 2013, Stock A just paid an annual dividend of $2 per share. The dividend is expected to grow %4, %3, and %2 in 2014, 2015, and 2016, respectively. After that, it is expected that the dividend will not grow any more in the future. Given that the required return is %6, complete the following table and calculate the value of the stock
Year 2014: Growth rate 4%, Dividend=? Present Value of Dividend=?.
2015: Growth rate %3, Dividend =? Present Value of Dividend=?.
2016: Growth Rate 2%, Dividend =?. Present Value of Dividend=?