Question: Question 4. Stock valuation (2 points) a. Assume that a stock has the same dividend paid in perpetuity. Find the value of the stock with

Question 4. Stock valuation (2 points) a. Assume that a stock

Question 4. Stock valuation (2 points) a. Assume that a stock has the same dividend paid in perpetuity. Find the value of the stock with a $2 annual dividend if the required return is 2%. b. Now assume that the stock's dividend is $1 and it grows at 2% every year. Assuming a constant rate of growth and a required return of 3%, find the value of the stock

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