7. The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years, and the required return is 10%, then what should the price of the stock be in 5 years when you plan to sell it? If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1 ? Why or why not? 8. Go to the St. Louis Federal Reserve FRED database and find data on net corporate dividend payments (B056RC1A027NBEA). Adjust the units setting to "Percent Change from Year Ago," and download the data into a spreadsheet. a) Calculate the average annual growth rate of dividends from 1960 to the most recent year of data available. b) Find data on the Dow Jones Industrial Average (DJIA) for the most recent day of data available. Suppose that a $100 dividend is paid out at the end of next year. Use the Gordon growth model and your answer to part (a) to calculate the rate of return that would be required for equity investment over the next year, assuming you could buy a share of DJIA