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4. MGM International just announced that it will pay S(age/10) dividends next year. The company decided not to retain any earnings. a. Since the company

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4. MGM International just announced that it will pay S(age/10) dividends next year. The company decided not to retain any earnings. a. Since the company will distribute all their earnings, the company is not expected to grow. The current share price for MGM is $10. Calculate the discount rate. b. Assume that MGM Resorts International decided to cut its dividend payout ratio to 67%. How much should be the new discount rate? 4. MGM International just announced that it will pay S(age/10) dividends next year. The company decided not to retain any earnings. a. Since the company will distribute all their earnings, the company is not expected to grow. The current share price for MGM is $10. Calculate the discount rate. b. Assume that MGM Resorts International decided to cut its dividend payout ratio to 67%. How much should be the new discount rate

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