Problem 2 of 2 stock's current a P/E ratio is 25 (earning here is the earning next an expected dividend yield of 1 percent next year. a) Suppose the dividend will grow at rate 6 percent, estimate the risk-adjusted discount rate of the stock. b) Estimate the risk-adjusted discount rate for the stock if its dividend grows at rates of 5, 6, and 7 percent. c) Suppose the stock's payout rate is still the same and the risk-adjusted dis- count rate becomes 11 percent. What P/E should the stock have if the growth rate of dividends is 5, 6, and 7 percent? (Do a separate calculation for each growth rate.) Note: Please turn your assignment into Professor Huang's assignment box before 4:00 pm, Nov 30th. d) Suppose the risk-adjusted discount rate is 8 percent and the payout rate is growth rate of dividends is still the same. What P/E should the stock have if the 5, 6, and 7 percent (Do a separate calculation for each growth rate.) e) Use the CAPM model to discuss what might cause change in the risk-adjusted discount rate