5. Dividend discount model. The common stock of QliMarco is selling for $17.00. The firm pays dividends that are expected to grow at a rate of 3.60% indefinitely. (a) If the current dividend is $1/share, what is the implied required rate of return of QliMarco's equity? (b) If the expected dividend next year is $1/share, what is the implied required rate of return of OliMarco's equity? (c) What do you estimate the price of QliMarco stock to be after 10 years (at t = 10)? 6. Multiples. Suppose you plan to use multiples to estimate the stock price of Electronic Arts (EA). You observed the following quantities from a list of comparable companies in the same industry P/E EV/EBITDA Take Two Interactive 21.9% 9.6x Activision Blizzard 14.7 9.0x Konami 21.7 9.8x Ubisoft Entertainment 21.3x 3.1x where in the table P/E is the price-earning ratio, EV is enterprise value, and EBITDA represents earnings before interest, tax, depreciation and amortization. (a) Suppose EA currently has an EPS (Earnings per Share) of $2.64/share, what is your estimation of EA's stock price? (b) Suppose EA currently has an EBITDA of $260M, what is your estimation of EA's enterprise value? Hint: you have discretion over which company to use, just provide an explanation