Question: In the problem below, you can use a risk premium of 5.5% and a tax rate of 40% if either is not specified. All work
In the problem below, you can use a risk premium of 5.5% and a tax rate of 40% if either is not specified.
All work and answers must be done/shown in an Excel Spreadsheet

5. UJ Gas is a utility that has followed a policy of increasing dividends every quarter by 5% over dividends in the prior year. The company announces that it will increase quarterly dividends from $1.00 to $1.02 next quarter. What price reaction would you expect to the announcement? Why
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