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need help with questions 19 and 20 Question 19 (4 points) Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid

need help with questions 19 and 20 image text in transcribed
Question 19 (4 points) Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $8.70. You believe that dividends will grow at a rate of 11.0% per year for two years, and then at a rate of 6.0% per year thereafter. You expect the stock will sell for $81.16 in two years. You expect an annual rate of return of 13.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now? $109.31 $129.44 O $80.50 O $144.06 O $155.95 Question 20 (4 points) You are considering buying common stock in Grow On, Inc. You have calculated that the firm's free cash flow was $8.40 million last year. You project that free cash flow will grow at a rate of 7.0% per year indefinitely. The firm currently has outstanding debt and preferred stock with a total market value of $20.35 million. The firm has 2.76 million shares of common stock outstanding. If the firm's cost of capital is 21.0%, what is the most you should pay per share for the stock now

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