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Part 2 (40 points). Answer all questions. Each question is worth 20 points. Write your answers on these pages. Show all work, including the formulas

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Part 2 (40 points). Answer all questions. Each question is worth 20 points. Write your answers on these pages. Show all work, including the formulas you are using. If you use you calculator, explain the steps you are using. Partial credit will be given. 1. A corporation will pay a $2.00 dividend in one year, $3.00 in two years and $4.00 in threee years. After that, dividends are expected to grow by 2% per year. The required rate of return is 6% a. What will be the price of the company's stock two years from now? b. What should be the price of the stock today

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