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How much money can Victor withdraw from the bank in year 3 ? How much money can Victor save in the bank today? With such an investment plan, how much money will Victor have in year 3 ? Suppose Victor consumes all his dividends over these years and his wealth consists of the capital gains from the stock and the money withdrawal from the bank. Question \#6 to \#10 will use the following information to guide you through a wealth management problem. Goliath Inc. decides to pay the following dividends over the next three years: $2,$2.08, and $2.16. Thereafter, the company will maintain a constant growth rate as in the first 3 years forever. The required return of Goliath's stock is 12%. Suppose Victor has $1000 today. He decides to buy 10 shares of Goliath's stock today and save the rest of his $1000 into the Whales Cargo bank, which provides an annual interest rate of 6%. Victor will sell his shares of Goliath's stock in year 3 and withdraw the money from the bank as well. Victor wants to know how much money he can have in year 3 , with such an investment plan. Question 6: What is the stock price of Goliath Inc, today? What is the stock price (per share) of Goliath Inc. when Victor sells it in year 3 (immediately after the third dividend is paid out)

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