please answer correctly and show workings.

Below is an example for a rental property where we expect to be able to raise rates by some constant percent each year. 2. Calculate the future cash flows for a rental duplex that is expected to generate $12,000 in cash flow next year and we expect we can increase rental rates each year by 3% for the property. Using the Gordon Constant Growth Model Okay, now let's use the shortcut formula called the Gordon Constant Growth model to calculate the value of ABC company above. This formula is a shortcut to calculate the PRESENT VALUE of all future dividends (cash flows) to the investors. The company just paid a dividend of $2.00 and analyst expect these dividends to grow by a rate of 5% per year indefinitely. Further, assume the return required by prospective investors is 14%. According to the Gordon Model, what is the price of this firm's common stock? (Present value of all those future dividends) Value=kgD0(1+g)=kgD1=Value=.14.052.00(1+.05)=.14.052.10=.092.10=$23.33 VERY IMPORTANT Always use the decimal value in the formula not the % value. So, write 4% as . 04 in the formula. The Gordon formula tells us that when we find the PRESENT VALUE of all the future dividends expected to be paid by ABC and we add them all together, we get $23.33. That is the value based on the given information that an investor is will to pay for ABC's stock today. 3. Let's use the shortcut formula called the Gordon Constant Growth model to calculate the value of Stock A from above. The company just paid a dividend of $3.00 and analyst expect these dividends to grow by a rate of 4% per year indefinitely. Further, assume the return required by prospective investors is 12%. According to the Gordon Model, what is the price of this firm's common stock? (Present value of all those future dividends) Value=kgD0(1+g)=kgD1= Value=kgD0(1+g)=kgD1= 4. Okay, what about the rental property? Assume you have a required rate of return on 12% for duplex investments. Value=kgD0(1+g)=kgD1= You can also calculate any missing information such as k or g as long as you have all the other information by doing basic ALGEBRA to solve for the missing variable. Give it a try below