Question: HW help for both please with explanation. Use the information to answer the following questions. ABC Company has been growing at a 10% rate, and

HW help for both please with explanation.

HW help for both please with explanation. Use the information to answer

Use the information to answer the following questions. ABC Company has been growing at a 10% rate, and it just paid a dividend of $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20% annually for the next 2 years. After this time, growth is expected to return to the long-run constant rate of 10%. The company's beta is 2.0, the required return on the market is 11%, and the T-bill rate is 7%. What should be the stock price today?? Select one: a. $95.04 b. $77.26 c. $81.26 d. $99.36 e. $78.26 during the first Continued from previous question. You expect the stock price to year. Select one: a. Increase by 4.60% b. Decrease by 4.60% c. Decrease by 10.40% d. Decrease by 10.00% e. Increase by 10.40%

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