A. Solving for Price: V = D0(1+g)/k-g = D1/(k-g) , where D0 = current dividend, k = required return, and g = growth rate What would an investor be willing to pay for a stock if she just received a dividend of $2.50, her required return is 15%, and she expected dividneds to grow at a rate of 5% per year. D0 $2.50 k 15.00% g 5.00% V? $26.25 $26.25 B. Solving for Return: k = D0(1+g)/V + g = D1/V + g What is my expected return on a stock that costs $26.25, just paid a dividend of $2.50, and has an expected growth