10. Ms. Rolle your boss at Anderson, Capron & Young has asked you to analyze the Lil Man Bakery Company (LMBC), a chain of bakeries and expresso cafes, whose last dividend (DO, which was paid yesterday) was $2.00. Assume that the risk free rate (the Yield of T-Bills) is 7% and that the required rate of return on the market is 12%. In your report to Ms. Rolle, you are to answer the following questions: 4 Assume that LMBC's earnings and dividends are expected to decline at a constant 6% pa, that is. 9 = -6%. Why would anyone be willing to buy such a stock and at what price should it sell? (6 Points)