1. During the previous four years TATA Company common stock dividends have grown from $ 1.00 (Year 0) to 1.36 (year 1) per share. Determine the annual compound dividend growth over the 4 years period. Hint: You may refer to the compound value technique.
2. Determine the current value of a share of TATA stock to a investor who plans to hold it for 5 years, assuming that the stock price increases at the same rate as the dividends. he investor’s required rate of return is 12 percent.