Question 4 Rogers Robotics currently (Year 0 = 2004) does not pay a dividend. However, the company Is expected to pay a $1.00 dividend two years from today (2006). The dividend is then expected to grow at a rate of 20 percent a year for the following three years. After the dividend is paid in 2009, it is expected to grow forever at a constant rate of 7 percent. Currently, the expected return on the stock is 13 percent. Required: What should be the price of the stock today? Question 5 It is now January 1, 1999; Great Wall Electric Inc. has just developed a solar panel capable of generating 200 percent more electricity than any solar panel currently on the market. As a result, Great Wall is expected to experience a 15% annual growth rate for the next 5 years. By the end of the 5 years, other firms will have developed comparable technology, and Great Wall's growth rate will slow to 7% per year indefinitely. Shareholders require a return of 12% on Great Wall's share. The most recent annual dividend (Do), which was paid yesterday, was $1.75 per share. Required: a. Calculate the expected dividends for years 1999 to 2004 (to the nearest cents). b What is the share price now (to the nearest cents)? C. If you bought this share, what are the expected dividend yield, the capital gains yield and the expected total return for 1999? Question 6 A substantial percentage of companies listed in the various stock exchanges around the world don't pay dividends. Nevertheless, investors are willing to buy shares in them. How is this possible given that the value of stocks typically depend on dividends? Also, under what circumstance might a company choose not to pay dividends