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Only answer, question 7-15. Thank you. Part 3 Stocks and Options You buy a share of The Ludwig Corporat (415)/ Common Stock buy a share

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Only answer, question 7-15. Thank you.

Part 3 Stocks and Options You buy a share of The Ludwig Corporat (415)/ Common Stock buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay LSLOZ. 51.1449. and $1.2250 in Yeurs 1, 2, and 3. respectively, and you expeu to sell it at a price of $26.22 at the end of 3 years. a. Calculate the growth rate in dividends. b. Calculate the expected dividend yield. c Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Investors require a 13% rate of return on Brook Corporation stock (r = 13%). at Growth Valuation 2. What would the estim at would the estimated value of Brooks stock be if the previous dividend were $3.00 and if investors expect dividends to grow at a constant annual rate of (1) -5%, (2) 0%, (3) 5%, and (4) 10%

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