Part 1 ----- Calculate stock value (or stock price). (1) constant dividend (or zero growth dividend) case, (2) constant growth dividend case, (3) non-constant growth dividend case. The 3rd case includes companies temporarily not paying dividends (no-dividend case), companies increasing dividends at an uneven growth rate (uneven dividend growth case), and companies increasing dividends at one and then at another growth rate (supernormal growth dividend case, also known as two-stage dividend growth case).
Part 2 ----- Two components of annual return on stock. Case (2) from above, the constant growth dividend case, is used to develop the formula for the annual stock return. The two components of annual stock return are: dividend yield and capital gains yield.
Part 3 ----- Brief comparison of Common Stock and Preferred Stock.
