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I will make this easier, you just need to correct because I have tried these two

ID: 2623911 • Letter: I

Question

I will make this easier, you just need to correct because I have tried these two problems and I'm missing something: For the first problem I Found a similar problem which is correct but I don't know what to put as "Kcs"

This is the link of the page where I found the problem:

http://www.scribd.com/doc/128415949/10/BASIC

This is the problem I need to answer:

Two-Stage Rocket paid an annual dividend of $1.20 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 9.70 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage

Explanation / Answer

Year Dividend Dcf @ 13% cash flow 0 1 1 3.15 0.88 2.79 2 3.40 0.78 2.66 2 73.48 0.78 57.55 63 3 3.67 0.69 2.55