Question 7 2.5 pts For the next 5 years, the annual dividends of a stock are expected to be $ 2, 2, 2, 3 and 2 (all cash flows are at the end of year) and the stock price is expected to be 60 at the end of 5 years. If the firm has a 10 percent cost of equity, what should be the value of the stock? 38.68 45.51 50.06 43.23 40.95 Question 8 2.5 pts Facebook Corporation (FB) has been growing at a rate of 37% per year in recent years. This same supernormal growth rate is expected to last for another 5 years, during which it will not pay dividend. It will start paying a dividend of $7 a share in 6th year. After this, earnings and dividends are expected to grow at a 4 percent annual rate indefinitely. Investors currently require a rate of return of 10 percent. What should be the current market price per share of its stock? 65.19 72.44 61.57 79.68 68.81