Question: Please answer question 8! Question 8 (7 points) The stock of Robotic Atlanta Inc. is trading at $ 31.59 per share. In the past, the

Please answer question 8!

Please answer question 8! Question 8 (7 points) The stock of Robotic

Question 8 (7 points) The stock of Robotic Atlanta Inc. is trading at $ 31.59 per share. In the past, the firm has paid a constant dividend (i.e., g 0) of $4.07 per share and it has just paid an annual dividend (i.e., DO-4.07). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 7.2 % forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Your Answer: Answer One of the basic relationships in bond pricing is that, other things held constant, for a given change in the required rate of return (i.e., the yield to maturity), the the time to

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