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Suppose RayBan Inc. is expected to pay a $6.50 dividend every year and the required return is 14%. Assuming the dividend will remain fixed, what

Suppose RayBan Inc. is expected to pay a $6.50 dividend every year and the required return is 14%. Assuming the dividend will remain fixed, what is the price of the stock today?

But, if RayBan just paid a dividend of $2.75 per share. It is expected to increase its dividend by 4% per year. If the market requires a return of 8% on assets of this risk, how much should the stock be selling for today?

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