answer both (b) & (c)

(b) The price of Geeslin Corporation stock is expected to be $68 in 5 years. Dividends are anticipated to increase at an annual rate of 20 percent from the most recent dividend of $2.00. If your required rate of return is 16 percent, how much are you willing to pay for Geeslin-stock? (6 marks) (c) As a financial analyst for an investment firm, you are to advice your company to invest in stocks, and you are provided with two different investment: Stock ABC and Stock XYZ. Below is the information presented to you: Probability Possible Outcomes Pessimistic Most likely Optimistic Stock ABC Returns 7% Stock XYZ Returns 13% 0.25 0.50 15 0.25 23 (4 marks) (1) (ii) Calculate the expected value for each stock. Calculate the standard deviation for each stock. (6 marks) (iii) Which stock should you advise him to choose? Justify your