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can someone help with these? 5. The stock price of Google is $50. Investors require a 10 percent rate of return on similar stocks. If
can someone help with these?
5. The stock price of Google is $50. Investors require a 10 percent rate of return on similar stocks. If the company plans to pay a dividend of $2.00 next year, what growth rate is expected for the company's stock price? SHOW ALL WORK: Formula: g=R(D1,P0) 6. Suppose a firm expects to increase dividends by 12% in one year and by 8% in two years. After that, dividends will increase at a rate of 6% per year indefinitely. If the last dividend was $3 and the required return is 12%, what is the price of the stock? SHOW ALL WORK USE: P0=D0(1+g)/(Rg)&P^0=(1+R)1D1+(1+R)2D2+(1+R)2P2 Step by Step Solution
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