A firm just paid a dividend of $1.45 / share with a constant growth rate of 6% and a required rate of return of 11% What is the current price of the security? 2 A stock is currently selling for $38. A dividend is to be paid next period of $1.89. The growth rate is a constant 5%. What is the required rate of return on this security? 3 Assume a constant dividend of $8.50 for the next 11 years and after that no dividend will be paid for the rest of the firm's life At a required rate of return of 12%, what is the current price of the stock? 4. The Coca-Cola company is trying to decide whether to cut its expected dividends for next year from $8 per share to $5 per share in order to have more money to invest in new projects. If it does not cut thedividend, the firm's expected rate of growth in dividends is 3 percent per year and the price of their common stock will be $50 per share. However, if it cuts itsdividend, the dividend growth rate is expected to rise to 8 percent in the future. Assuming that the investor's required rate of return for the stock does not change, what would you expect to happen to the price of its common stock if it cuts the dividend to $4? Should the Coca-Cola company cut its dividend