Question: 1. What discount rate would make you indifferent between receiving $3,586.00 per year forever and $5,243.00 per year for 25.00 years? Assume the first payment

1. What discount rate would make you indifferent between receiving $3,586.00 per year forever and $5,243.00 per year for 25.00 years? Assume the first payment of both cash flow streams occurs in one year.

2. A firm just paid a dividend of $1.10. The dividend is expected to grow at a constant rate of 2.23% forever and the required rate of return is 11.10%. What is the value of the stock?

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