Question 2 Company XYZ just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year indefinitely. If the required rate of return for investors is 10%, what is the current value of the stock using the Gordon Growth Model? Question 3 Based on Question 2, suppose that company XYZ declares that its new Eu- ropean plant is under construction and will increase the company's sales growth in 5 years. You therefore revise your expectation about XYZ's dividend growth rate. That is, it will be 6% annually starting from 2029. What is the new current value of the stock?