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2. Assume a stock that has a payout ratio of 30%, a current dividend of $2, a return on investment of 12%, and a beta

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2. Assume a stock that has a payout ratio of 30%, a current dividend of $2, a return on investment of 12%, and a beta of 145. Its dividends are assumed to grow at a constant rate. Assume market return of 12% and risk-free rate of 3%. (1) Find the growth rate. (2) Estimate the expected future dividends for the next 50 years. (3) Find the require rate of return. (4) Find the present value of expected future dividends and the sum of all (5) Use the constant growth rate model Vo=D1/(K-g) to find the value of the stock. (6) Compare your answer to (4) and

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