Question: Part II: Computation Questions (Each 10 points) 1. Compute the value of common stock: Upotonic.com. The company is expected to pay its dividends in a

Part II: Computation Questions (Each 10 points) 1. Compute the value of common stock: Upotonic.com. The company is expected to pay its dividends in a pattern provided below. Notice that the beta of this stock (Bup)-0.5, nv-296, and rmarket-8% Do $1.00 Di-$1.05 Dr-$1.1025 .(this dividend payment pattern continues.) 2. Compute the value of common stocks: Lypy.com. The company is estimated to pay dividends at a 30% growth rate up to two years from today. However, the di growth will be at the steady state rate of 5% (-3). Notice that the beta of this stock (,)-12, re-2%, and rmarket-8% Do- $0.50 Di $0.60 D-$0.72 D-$0.756 D-$0.7938... 21Page

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