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formula + answer (no tables) 5. The stock pays 8% coupon constantly forever, your required rate of return is 6%, how much would you pay

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5. The stock pays 8% coupon constantly forever, your required rate of return is 6%, how much would you pay to buy it? What is the expected price after one year? (8 PTS) 6. You believe that the stock who is going to pay $4 dividend next year and will grow then at a constant rate forever. If it sells today at $60, what should be its dividend growth rate? (8 PTS)

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