Question: Question No. 02: [Marks: 4+7 = 10 a) Describe the features of the Common Stock. b) Sunny Sky Ventures' common stock just paid its annual

Question No. 02: [Marks: 4+7 = 10 a) Describe the features

Question No. 02: [Marks: 4+7 = 10 a) Describe the features of the Common Stock. b) Sunny Sky Ventures' common stock just paid its annual dividend of $1.80 per share. The required return on the common stock is 10%. Dividends are expected to grow at an annual rate of 5% for each of the next 3 years, followed by a constant annual growth rate of 4% in years 4 to infinity. Calculate the present value of the stock

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