Suppose gdl just paid a dividend of 2 and the required


1. GDL just paid a dividend of $4 per share. Investors expect the company's dividends to grow at a constant rate of 3% per year, and they require a 12% return to invest in the stock. What is the expected price of GDL 1 year from now?

2. Suppose GDL just paid a dividend of $2 and the required return on the stock is 15%. What growth rate must investors expect if the stock currently sells for $53?

Answer to 4 decimal places,

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Financial Management: Suppose gdl just paid a dividend of 2 and the required
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