FINANCIAL SECURITIES EVALUATION - STOCKS the Intercot valo es lo You're about to invest on...

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FINANCIAL SECURITIES EVALUATION - STOCKS the Intercot valo es lo You're about to invest on a Togolese company expected to pay 3 dollars dividends per year. You are not sure if it is a good deal or not, and so you gather the following information from your financial analyst: Dividends are expected to grow by 1 percent during the first three years After this, they will grow by 3 percent per year between year 4 and 6 Finally, your are hundred percent sure they will be constantly growing by 5 percent per year forever starting year 7. What is Do? (10 points) b- What are D2 ? Ds? and D7? (10 points) C What is the Terminal Value? (15 points) d- Suppose that you did have 150 dollars in your bank account for this investment. a. What is the price of the stock today? (15 points) b. Do you think it is a good deal or not for you? Explain why. (10 points)

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