BIU. Merge & Center Fo Format Painter board Font Alignment Number (c) How much will you be willing to pay for the stock if the required rate of return is 10 5 D E F H 1 ABC Corp. has recently paid $4 dividend per annum. The required rate of return of of the company is 12%. What is the expected price of ABC stock, if : (a) the dividend is expected to grow at a constat growth rate of 5% Value $ 35.05 (b) the dividend remains the same for indefinite period of time. Value $ 33.33 C) How much will you be willing to pay for the stock if the required rate of retum is 10% and dividend is expected to grow at 3% 5429 (D) Suppose that the stock is currently trading at $15. Will you buy the stock. Chapter Chapter 7 Chapter Chapter 9 Chaptele bbcollab.com is sharing your screen Stop sharing MacBook Pro ) 2 3 $ 4 Q W - 5 0 E 6 R