zack ali

a. Suppose you have been analyzing XYZ company and you realized that the dividend (DI) paid at the end of the year is $3 per share and that dividend grows at a rate of 5% while the required rate of return is 10%. So Using the Gordon growth model, Determine the current stock price of XYZ company? (3marks) b. As an analyst you know that there is a relationship between monitory policy and stock prices. So explain to the manager of XYZ company how monitory policy effects on stock prices. (2marks)