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5. Widget Inc.'s most recent annual dividend was $3.25 a share. The firm has been growing at a consistent 3% rate for several years, but

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5. Widget Inc.'s most recent annual dividend was $3.25 a share. The firm has been growing at a consistent 3% rate for several years, but analysts generally believe that better times are ahead, and that future growth will be in the neighborhood of 4%. The stock is currently selling for $53. Stocks similar to Widget earn returns ranging from 10% to 12%. a. Calculate values for a share of Widget at interest rates of 10%, 11%, and 12% b. Repeat the calculations of part a assuming that instead of rising, Widget's growth rate (1) remains at 3% or (2) declines to 2%

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