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Link to Excel File with Question Southeast Health Systems stock paid a dividend of $3.25 today. Analysts predict that Southeast's dividends will grow at a

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Southeast Health Systems stock paid a dividend of $3.25 today.
Analysts predict that Southeast's dividends will grow at a rate of 2% annually in the future.
Southeast's stock has a beta of 1.3 and current market conditions require a 5% return
on the market and the risk free rate is 2%.
a. What price would you expect to pay for Southeast's stock today, in one year and in two years? (6 points)
b. What is the current and capital gains yield expected in year 2? (4 points)

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