ACTS 368: MATHEMATICAL CORPORATE FINANCE II ASSIGNMENT 2 Question One a). The dividends of the Reisner Company are expected to grow at an annual rate of 18% for the next 5 years, then at a rate of 12% each year for the next 4 years, and thereafter grow at a rate of 5% each year. If the Reisner Company's current dividend is $1.50 per share, and its required rate of return is 11%, determine the price of the stock. b). The earnings of Smith Corporation are expected to grow at a rate of 10% for the next 5 years. The Smith Corporation has current earnings per share of $4.65, and its dividend-payout ratio is expected to stay at 60%. An ending P/E ratio of 17 is expected. If an investor purchases the stock for its current price of $60 and holds it for 5 years, what before-tax return does he expect to earn