I see for part A they want the value of the company or the value per share at T=4. Now does this include the PV of all the dividends before T=4 because in the solution they do not add this to the value? Why? In my mind, this whole model is forward looking from T=0 and onwards, why ignore in your valuation at T=4 the value of all the dividends you shall receive up until this date?

I think your confusion seems to be around value at the end of year 4 (V4) vs. current value (pv) of the stock. (V0).

If its V4 then to me thatâ€™s forward looking for 4th yr. So calc. DPS up to 4th year from spreadsheet forecasting, look at future growth (11.8-0.2 =9.8), factor that into your DDM model.

No need of discounting ($61.76) if thats what you are referring to since question is value at the end of 4th year.

RHZ is correct. Think of it this way, if you bought a stock today, you are paying for future dividends you are expecting to receive and not for the dividends already cashed by the seller of the stock. So for value at T=4, the dividends that matter would be D5 onwards.