Coquitlam College Find the Price of A Stock Economics Questions

Answer the following questions:a. The price of a stock when you sell it in a year is predicted to be $65. If dividend is expected to be $1.5 next year, and the required return is 4.5%, what should be the price of the stock today?b. You believe that a corporation’s dividends will grow 5 percent on average into the foreseeable future. If the yearly dividend payment is $2, assuming a 4 percent required return, what is the price of the stock today?