Problem 2 Intro A stock just paid an annual dividend of $2. The dividend is expected to grow by 10% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 10% after 3 years to 7% in year 6. The required rate of return is 12%. Part 1 Attempt 6/10 for 10 pts. What is the stock price if the dividend growth rate will stay 0.07 (7%) forever after 6 years? 1+ decimals Submit - Attempt 1/10 for 10 pts. Part 2 In 6 years, the P/E ratio is expected to be 25 and the payout ratio to be 80%. What is the stock price when using the P/E ratio? No decimals Submit