Exercise 6 - 1. Two companies have just paid a $2.00 dividend. Company NG Inc. is expected to continue the same dividend payment indefinitely. CG Corp.'s dividend is expected to grow at a constant rate of 4% indefinitely. For both companies the market-required rate of return (discount rate) is 12%. a. Calculate both companies' current stock prices. b. Calculate both companies' stock prices one year from today and the one year rate of return for an investor buying at the current rate, getting the dividend and selling immediately after that at the one year price. . c. Calculate the expected stock price of both companies five years from the present. What would be the expected rate of return for an investor buying either stock in year five and holding it for one year only