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1)XYC stock price is expected to reach USD50 at the end of the year, and to pay a dividend of 50 cents per share. Investors

1)XYC stock price is expected to reach USD50 at the end of the year, and to pay a dividend of 50 cents per share. Investors expected rate of return is 5%. What is the expected stock price today? 2)A stock will pay a dividend of $10 in year 3, assume the dividend will grow annually forever and the stock price is $500 in year 2. The expected return is 4.0 %. What should be the constant growth rate of dividend?

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