Part 1: Verizon is expected to pay a $2.510 dividend next year. This will grow at 5% a year for the following four years. Afterwards, the company will maintain a constant 1.5% growth rate in dividends in perpetuity. If the required return on the stock is 6%, what is the current share price?
Part 2: Allstate preferred offers preferred dividend of 7.52% based on a $10 par. This dividend will be paid in perpetuity stating five years from now. If the market requires a 9.05% rate of return, how much does a share of preferred stock cost today?
Please use excel and post screenshots of the formulas used to get the answers in whichever cell is selected