Question: need help with questions 5 and 6 please Question 5 (1 point) You are considering buying common stock in Grow On, Inc. You have projected
Question 5 (1 point) You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $3.90 and that dividends will grow at a rate of 6.0% per year thereafter. If you would want an annual return of 25.0% to invest in this stock, what is the most you should pay for the stock now? $21.76 $20.53 $15.60 $16.54 $22.43 Question 6 (1 point) You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $5.60 and that dividends will grow at a rate of 7.0% per year thereafter. The firm's beta is 2.28, the risk-free rate is 6.7%, and the market return is 15.8%. What is the most you should pay for the stock now? $29.30 $27.38 $20.40
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