Question: a) Dollar General is expected to pay a $2.00 per share dividend at the end of the year (i.e., D1= $2.00). The dividend is expected

 a) Dollar General is expected to pay a $2.00 per share

a) Dollar General is expected to pay a $2.00 per share dividend at the end of the year (i.e., D1= $2.00). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 10%. What is the stock's current value per share? b) Dominion Power Company's last dividend was $1.50. The dividend growth rate is expected to be constant at 2.5% for 2 years, after which dividends are expected to grow at a rate of 5.0% forever. The firm's required return ( rs ) is 10.0%. What is the best estimate of the current stock price

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