Question: 4 . You are analyzing a stock whose most return annual dividend was $ 3 . 2 0 . Dividends have been growing at an

4. You are analyzing a stock whose most return annual dividend was $3.20. Dividends have been growing at an annual rate of 2% for several years, and you expect that growth rate to continue. a. If your required rate of return on the stock is 13%, what is the fair market value of the stock? b. If your required rate of return is 15%, what is the fair market value of the stock? c. What do your answers to parts (a) and (b) tell you about the relationship between required rates of return and the fair market value of a stock?

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