Question: 5 . a . A company is expected to pay a dividend of $ 1 . 5 0 per share next year. The dividends are

5.a. A company is expected to pay a dividend of $1.50 per share next year. The dividends are expected stay the same indefinitely. If the required return on similar investments is 8%, what is the current price of the stock?
5.b. Another company is expected to pay a dividend of $1.50 per share next year. The dividends are expected to grow at 3% per year indefinitely. If the required return on similar investments is 8%, what is the current price of the stock?
5 . a . A company is expected to pay a dividend

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