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i need help solving all of Q12. Given work/answers are incorrect Consider the following information: 12) The dividend for both of these companies will increase

i need help solving all of Q12. Given work/answers are incorrect image text in transcribed
Consider the following information: 12) The dividend for both of these companies will increase at a constant rate of 5% forever starting in year 5 . The expected market return is 4.7%, and the risk-free rate is 2.5%. PV04P4=(Rg)D5=(.0474)=(21.07)(D4g)= 12a) What is the value of Rulio Inc.? Price: $94.885 5+2(.047.025)=0.069=6.9% P6=1.581+1.606+0+1.66+1.75=6.59+88.24=94 14. 12 b) What is the value of Papik Inc? Price: t) 1.115 P0=(1.07)21+(5.00)21+(2.0+1)22+(1.0+4)1.5+P4=(1.07)4D5=1.51.05)P0=4.85+16.56=21.11 131+15.25 12c) Based on the above information from 12a and 12b, which stock would you buy and why

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