Chapter 8 -Stages of Growth FIN 2310 FA2 2 1) Big East Inc. announced today it will grow its dividend by 15% for the next 3 years and then it's growth will continue indefinitely at 5% thereafter. Big East just paid a $2 dividend. If you believe the appropriate required rate of return on the stock is 10% what would you be willing to pay for the stock? 2) Mountain Sky Inc. announced today it will grow its dividend by 30% for the next 2 years and then it's growth will continue indefinitely at 3% thereafter. Mountain Sky is expected to pay dividend in one year of $5. If you believe the appropriate required rate of return on the stock is 15% what whuld you be willing to pay for the stock