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1. What would be the stock price today if you know you will sell the stock in 2 years from today at $75/share and you

1. What would be the stock price today if you know you will sell the stock in 2 years from today at $75/share and you expect annual dividends $5/share in year 1 and $10/share in year , given the discount rate is 10%?

2. What is the ROE for a firm with a 50% payout ratio, a 20% expected return and a dividend yield of 5%?

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