a.If a stock is expected to pay an annual dividend of $20 forever,what is the approximate present value of the stock,given that the discount rate is 5%?
b.If a stock is expected to pay an annual dividend of $20 forever,what is the approximate present value of the stock,given that the discount rate is 8%?
c.If a stock is expected to pay an annual dividend of $20 this year,what is the approximate present value of the stock,given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?
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