Question: Please show your work and explain your answer. EHF Inc. expects to pay a dividend of $1.00 in T=1. The required return on the stock

Please show your work and explain your answer. EHF Inc. expects to pay a dividend of $1.00 in T=1. The required return on the stock is 10%.

a) What is the present value of the stock if the dividend is not expected to grow in the future?

b) What is the present value of the stock if the dividend is expected to grow at 5% per year into infinity?

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