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please answer all questions clearly thanks The stock of Company A pays a fixed dividend of $6 per share each year. The required return on

image text in transcribedplease answer all questions clearly thanks
The stock of Company A pays a fixed dividend of $6 per share each year. The required return on this stock is 12%. a. Calculate the price of the stock. (10%) b. Company A suddenly announces that their project in India was a success and from next year the dividend will grow at an annual rate of 5% (i.e. next year the dividend will be 6(1+5%) and so on). How will the stock price change? (20%) c. The next day after the announcement the price of the stock rises to $100. Is it different from your answer in question (b)? What could be the reasons for the difference? (40%)

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