Investors require a 10 percent per year return on the stock of the Rabiya’s Corporation, which anticipates a non-constant growth pattern for dividends. The company paid a $2.50 per share dividend. The...

 Investors require a 10 percent per year return on the stock of the Rabiya’s Corporation, which anticipates a non-constant growth pattern for dividends. The company paid a $2.50 per share dividend. The dividend is expected to grow by 15 percent per year until the end of year 4 (i.e., for the next 3 years) and 7 percent thereafter.

(d) Find the present value of all future dividends beginning with the fifth year’s dividend. The present value you find will be at the end  of the fourth year. Use the formula P4= D5/(r-g).

(e) Discount back the value found in part  (d)for 4 years at 10 percent.

f)  Determine the value of the stock Po.