14. You are thinking to purchase Ranch Inc.'s common stock. The company will pay a dividend of $2.50 per share at the end of the year. The future dividend will increase by 1.05% per year. a. If your required return on this stock is 12%, what price would you be willing to pay for it now? b. How much would you like to pay for the same stock if your required return rate is 18%? (16 points) -X

14. You are thinking to purchase Ranch Inc.'s common stock. The company will pay a dividend of $2.50 per share at the end of the year. The future dividend will increase by 1.05% per year. a. If your required return on this stock is 12%, what price would you be willing to pay for it now? b. How much would you like to pay for the same stock if your required retum rate is 18%?(16 points)