Question: Consider the data in the provided in the data General Electrics. Estimate the following: Compounded annual growth rate in dividends Average annual growth rate in

- Consider the data in the provided in the data General Electrics. Estimate the following:
- Compounded annual growth rate in dividends
- Average annual growth rate in dividends
- Which of these two rates will you use for the Gordon Growth model, and why?
- Expected dividend in 2008
- The expected price in the beginning of 2008, if your expected rate of return in the past 20 years average return.
- The beta of stock.
- Is GE a defensive or aggressive stock? Explain your answer.
- If the next year's expected return on the market is expected to be 5%, and the risk free rate is expected to be 3%, what rate of return would you expect on GE?

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