Question: i need a detailed, step by step solution for both problem 2 and problem 5 Problem 2 (12 marks) SAGE Enterprises just paid a dividend

 i need a detailed, step by step solution for both problem
2 and problem 5 Problem 2 (12 marks) SAGE Enterprises just paid
i need a detailed, step by step solution for both problem 2 and problem 5

Problem 2 (12 marks) SAGE Enterprises just paid a dividend of $2 per share. The current market price is $50 per share. Dividends are expected to grow at a constant rate "g". The risk-free rate is equal to 3% and the share risk premium is equal to 5%. a. Calculate the growth rate of dividends "g". b. Estimate the price of the share 5 years from today. Problem 5 (12 marks) Consider a company that just paid a dividend a $3 per share. The dividends are expected to grow at the rate of 8% per year for the next 3 years and then at 4% thereafter. a. Draw the timeline for the first 6 years. b. Calculate the expected dividends for the next five years

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