Reference no: EM133074163

-How much should you be willing to pay for the E Motor company stock if the company last paid a dividend of $ 2.5 and you feel that a 7 percent growth rate can be maintained indefinitely? You require a 12 percent return.

-The E Motor company stock last paid a dividend of $ 2.5 and will pay constant dividend forever and you feel that a 0 percent growth rate can be maintained. You require a 12 percent return. Discuss present value of the growth opportunity of the company.[Remember to quote "Formula number #" and show your workings by typing in the variable/number that matches the formula]