Assignment: Three years ago, the Acme Co. paid a dividend of D, = $5.00 and now (three years later) has just paid a dividend of D = $3.89344. The beta for Acme Co.'s stock is B = 1.4. E[RM] = 10% and Rp = 5%. a) If the dividend growth rate implicit in these figures has been, and is expected to remain, constant for the foreseeable future, determine the constant growth rate, g. b) Determine the required rate of return, kes c) Calculate Po, the current price of Acme Co.'s stock. d) What dividend yield and capital gain is an investment in Acme Co. stock offering? Dividend Yield = Capital Gain = e) What will be Acme Co.'s common stock price be in 7 years? (P, = ?)