Question: Question 2 a) Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and

Question 2 a) Whizcom Inc. is expected to pay a dividend

Question 2 a) Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Il Compute the current stock price for Whizcom Inc. What would be the likely stock price in year 5? What would be per annum rate of return implied by a change in prices from time 0 to time 5? (1 + 2 + 2 = 5 marks)

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