Lioogte's stock price has topped $1231] on October 1?. After the market closed on October 1?, Ltoogte armounced earnings of $20 per share in the last quarter. Currently Google has about [145 billion share outstanding and the expected quarterly earnings growth is 8%. As a result, Google is not paying out dividend in the next 3 years. Google*s expected return is 25% more than that of Microsoft. Under this asstnnption, answer the following questions. (a) (h) (C) (d) (3) ( Currently Microsoft is traded at $9t} per share, with last quarter's earnings of $2.?tl per share. Suppose Microsoft pays out 30% of its earning as dividend, and its quarterly earnings growth rate is 3%, what are the expected returns for each company? There are 3 Billion shares outstanding for Microsoft. Before earning announcement, investors were expecting Google to have the same total earning in 3 years as that of today"s Microsoft. What was the market expecting for Google's earning on October 1?? Did Google exceed or miss the earnings expectation? Before earning announcement, investors were expecting Google's market value in 3 years will catch up with that of Microsoft in 3 years. What should he Google's share price on October 1?? Is GDDglE undervalued? Continue from (c), if Google will payout 25% of its earning as dividend after 3 years, what is the growth rate of Google in three years? After the earning announcement, analysts have increased Google's earning growth rate for the next 3 years to 8.15% per quarter, and the growth rate aer that to be 4.5%, what should he Google's price when the market opened on October 18 if the market is efficient? If Google decides to pay out l% of its earnings starting next quarter for the next 3 years instead, its growth rate for the next 3 years will reduce to ?% per quarter due to retained earning drop. After that Google will pay out 20% of its earnings as dividends, and earnings growth will remain at 4.5% per quarter forever. What should be Google's stock price on October 13, if they adopt this policy