Question: i need help with question 5, need to have the explanation on how the answer was found, thank you 20 5. FMC has just paid

i need help with question 5, need to have the explanation on how the answer was found, thank you i need help with question 5, need to have the explanation on

20 5. FMC has just paid its annual dividend per share of $2.00. The required rate of return on FMC's stock is 8%. a) If FMC continues to pay the $2.00 per share dividend for indefinite period, what would be its share price? b) Assume FMC's dividend grows at an annual rate of 5% for indefinite period. What would be its price per share? c) Assume instead FMC's dividend grows at 10% per year for the next 3 years and then at 5% per year thereafter. What would be its price per share? Last Dividend (Do) - $2 Required Return (Ke) = 8% QUESTION 5(a) Share Price -(Do / Ke) Share Price = ($2/0.08 ) Share Price $ 25 QUESTION 5(b) Page of words cp English (Unnes sinen

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