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ANSWER THE 3PROBLEMS BELOW:SHOW YOUR WORK a.If a stock is expected to pay an annual dividend of $40 forever, what is the approximate present value

ANSWER THE 3PROBLEMS BELOW:SHOW YOUR WORK

a.If a stock is expected to pay an annual dividend of $40 forever, what is the approximate present value of the stock, given that the discount rate is 8%?

b.If a stock is expected to pay an annual dividend of $30 forever, what is the approximate present value of the stock, given that the discount rate is 9%?

c.If a stock is expected to pay an annual dividend of $15 this year, what is the approximate present value of the stock, given that the discount rate is 12% and dividends are expected to grow at a rate of 4% per year?

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