Example 14 : DDM : Curriculum

[HedgeFudge]

[question removed by moderator]
As Stated in the probelm the dividend is 1.70$ for a year before . hence would it be 1.70(1+0.04)^5 ?

 

[analystdude]

I think it would be ^4. I hate how they parse the questions in this manner, I am sure that I will miss some questions due to overthinking the time periods.
edit: i just looked up this question, and when reading through it i was more confused whether to discount it by 1.09^4 or 1.09^3.5 because they are in the middle of the year………… : / Why else would they tell us that it was the beginning of July?? And if the dividend was paid 6 months ago that would lead me to believe we are discounting to the present which is 3.5 years from the end of period 4……am I overthinking this?