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1.6 Ridgemont Can Company's last dividend was $1.00. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next three years and the stock will then reach $13.00 per share. How much should you be willing to pay for the stock if you require a 12 percent return? 1.7 In the previous problem, the $13.00 is the stock price in year three. This represents the present value of all dividends from year 4 and beyond discounted back at the required return of 12%. If you believe that dividends from year 4 and beyond are going to grow at a constant rate, what must this rate be