Question: Please DO NOT ROUND INTERMEDIATE CALCULATIONS. ROUND FINAL ANSWER TO NEAREST CENT. Thank you in advance The Baron Basketball Company (BBC) earned $11 a share

Please DO NOT ROUND INTERMEDIATE CALCULATIONS. ROUND FINAL ANSWER TO NEAREST CENT. Thank you in advance

The Baron Basketball Company (BBC) earned $11 a share last year and paid a dividend of $5 a share. Next year, you expect BBC to earn $12 and continue its payout ratio. Assume that you expect to sell the stock for $130 a year from now. Do not round intermediate calculations. Round your answers to the nearest cent. a. If you require 10 percent on this stock, how much would you be willing to pay for it? $ b. If you expect a selling price of $115 and require a 9 percent return on this investment, how much would you pay for the BBC stock? $

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