1. The stock to answer the following questions is Fresh Del Monte Produce (FDP).

1) Solve using a multi period dividend discount model.

2) Provide sensitivity analysis showing how stock value varying with different discount rates and growth rates

D1= next year's expected annual dividend per share (.60*1.032)

K= the investor's discount rate or required rate of return (.0562)

G= the expected dividend growth rate (.032)

2. Builtrite Furniture just paid an annual dividend of $3.00 last week and investors' believe that dividends will continue to grow at a 9% rate into the future. The current price of Builtrite's common stock is $89. What return do investors' require of Builtrite stock?

11.57%

11.86%

12.37%

12.67%