Question: explain please 3. Resolve 1. the required rate of return is 8% 1. What is the value of a stock paying a fixed divided of

explain please 3. Resolve 1. the required rate of return is 8% explain please

3. Resolve 1. the required rate of return is 8% 1. What is the value of a stock paying a fixed divided of $2? 2. What is the value of the same stock if the dividend is expected to grow at 3%? 2. FaceBook currently provides an expected rate of return of 20%. If FB is expected to pay a year-end dividend of $3 per share and the stock is selling at $60 per share, what must be the market's expectation of the constant-growth rate of FB's dividends? E(r)=D1/Po +g 3. PPRUY (Kering) is currently priced at $57.14 and just announced a new contract with Post Malone. The profitable contract will enable them to increase the dividend growth rate from 5% to 6% (current dividend projected at $4). What happens to the stock price after the announcement? (how does the value of PPRUY change?) Vo=D1/K-g E(r)=D1/Po +g

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