Question: Questions 5 7 use the following setup. Summit Systems will pay a dividend of $1.50 next year. If you expect Summits dividend to grow by

Questions 5 7 use the following setup.

Summit Systems will pay a dividend of $1.50 next year. If you expect Summits dividend to grow by 6% per year and its required return is 11%, what is its price per share today?

Under which of the following scenarios will you be willing to pay a higher price than what youve solved for in Question 5?

Group of answer choices

A. The dividend will be $1.20 next year.

B. The required return is greater than 11%.

C. The growth rate is 8% per year.

D. Both (B) and (C) are correct.

What will its stock price be in four years?

Group of answer choices

A. $35.73

B. $37.87

C. $31.80

D. $45.54

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