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Show all work Font Paragraph Chapter 7: Having fun with stocks iBanana is a new firm, so it chooses to pay no dividend for the

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Font Paragraph Chapter 7: Having fun with stocks iBanana is a new firm, so it chooses to pay no dividend for the first 2 years because it plans to retain the cash for growth. In year three the firm will pay a dividend of $3, and will maintain it at this level for two years (year 3 and 4). Starting in year 5, the firm will increase it's dividend by 5% every year, forever. Assume the discount rate is 12%. Uplosd Suce (a) Find the stock price today (b) Find the stock price at t-13 Your recordin

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