Homework Answers
1.
=D0*(1+g)=2*(1+10%)=2.2
2.
=D1*(1+g)=2.2*1.08=2.376
3.
=D2*(1+g)=2.376*1.05=2.4948
4.
=D3/(r-g)=2.4948/(9%-5%)=62.37
5.
=D1/(1+r)+D2/(1+r)^2+P2/(1+r)^2
=2.2/1.09+2.376/1.09^2+62.37/1.09^2
=56.51
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