Problem 13 Intro A stock just paid an annual dividend of $5.4. The dividend is expected to grow by 3% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 17 and the payout ratio to be 60%. The required rate of return is 8%. IB Attempt 1/10 for 10 pts. Part 1 What is the value of the stock? 0+ decimals Submit Problem 14 Intro A stock just paid an annual dividend of $1.9. The dividend is expected to grow by 6% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 6% after 3 years to 3% in year 6. The required rate of return is 12%. Part 1 | Attempt 1/10 for 10 pts. What is the value of the stock if the dividend growth rate will stay 0.03 (3%) forever after 6 years? 1+ decimals Submit 6% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 6% after 3 years to 3% in year 6. The required rate of return is 12%. Part 1 | Attempt 1/10 for 10 pts. What is the value of the stock if the dividend growth rate will stay 0.03 (3%) forever after 6 years? 1+ decimals Submit Part 2 Attempt 1/10 for 10 pts. In 6 years, the P/E ratio is expected to be 17 and the payout ratio to be 80%. What is the value of the stock when using the P/E ratio? 1+ decimals Submit