0 0.4 0.8 Final Exam: May 16, 2023 Dr. Abdelouahid Assaidi Exercise 1 Better Mousetraps has come out with an improved product, and the world is beating a path to its door a result, the firm projects growth of 15% per year for five years. By then, other firms will have copy technology, competition will drive down profit margins, and the sustainable growth rate will fall to 6% The most recent annual dividend was DIVo = $1.5 per share. What are the expected values of DIV1, DIV2, DIV 3, DIV4, DIVs? What is the expected stock price five years from now? The discount rate is 8%. What is the stock price today? d. Find the dividend yield, DIV/Po. What will next year's stock price, P, be? What is the expected rate of return to an investor who buys the stock and sells it in one year? a. b. c. f. e. FIN 3301 (Section 1) Principles of Finance Exercise 2: If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discou