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Suppose a stock is currently selling for $ 6 2 per share and pays $ 0 . 0 5 per year in dividends. The analysts

Suppose a stock is currently selling for $62 per share and pays $0.05 per year in dividends. The analysts predict that the stock will be selling for $65 in one year.
a) What is the impact on current price of the stock?
b) What is the consequence on current price of the stock if the European
Central Bank announces an increase in the discount rate?
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