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consider a firm that is expected to pay the following dividends: (use a excel spreadsheet to calculate the values) year 1 2 3 4 5 6 $1.20 $1.20 $1.50 $1.50 $1.75 $1.90 and grow at 5% thereafter a. using an 11 percent discount rate, what would be the value of this stock? b. what is the value of the stock using a 10 percent discount rate? a 12 percent discount rate? c. what would the value be using a 6 percent growth rate after year 6 instead of the 5 percent rate using each of these three discount rates? d. what do you conclude about stock valuation and its assumptions?

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