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Nonconstant Growth Stocks: For many companies, it is not appropriate to assume that dividends will grow at a constant rate. M
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Answer #1

Current Dividend , D0 = $ 1.20

1.2 1.34 1.51 Imagine Works Inc Dividends Horizon value Cost of Equity Net cash flows Price of the stock today 12% 6% 9.50% 1

Formulae

A E F =C1643*(1+$B$1643) =D1643*(1+$B$1643) 1642 Imagine Works Inc 1643 Dividends 1644 Horizon value 1645 Cost of Equity 1646

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