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5. Common Stock A firm's common stock paid a dividend of $3.50 at the end of hast year and has a dividend growth rate of

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5. Common Stock A firm's common stock paid a dividend of $3.50 at the end of hast year and has a dividend growth rate of 5%. 1. What dividend will the firm pay at the end of this year? 2. What is the value of the stock if an investor's required nate of retum is 20% ? 3. What is the expected rate of retum on this stock if it currently trades at a price of $24.50 ? 4. Does the expected rate of retum increase or decrease if the stock price increases to $27.50 ? Assume the dividend is the same as in (1.) and the dividend growth mate remains constant at 5%

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