Q5. (Show all steps) If a firm just paid a dividend of $6.00 and the firm's capitalization rate is 11%(r=11%). a) What is the present stock price? b) What is the present stock price if the firm expected to grow at a constant rate of 8% indefinitely? c) If the firm expected to grow at 15% for the next3 years and after that the firm is expected to grow at 8% indefinitely? 1. What is the present stock price? II. If I bought the stock today and decided to sell it in two years what is my rate of return on this stock? What is my capital gain? Explain why me rate of return is not the same as capital gain? III. How much would you be willing to pay today to receive the stock in two years from now? Why it's different from P0? Explain. IV. What is P8? If my required rate of return is 15% would you pay the stock today and sell it in eight year. Explain and show your work. payout only $3 in dividend and plowback the rest ($3) in a new project. The