7. Suppose TX Inc. is expected to pay a $5 dividend in one year. If the dividend is expected to grow at 6% per year and the required return is 10%, what is the price? Suppose a firm is expected to increase dividends by 15% in one year and by 20% in two After that, dividends will be increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 10%, what is the price of the stock? years. 9. Suppose a company had earnings per share of $8 over the past year. The industry average PE rate is 15. Use this information to value this company's stock price. You observe a stock price of $18.75. You expect a dividend growth rate of 5%, and the recent dividend was$1.50. What is the required return? 10. most