Using the current stock price and expected dividend figure, verify that the stock’s dividend yield is 3.8% Using equation (11), re-compute the firm’s required rate of return (Hints: Compute the growth...

Using the current stock price and expected dividend figure, verify that the stock’s dividend yield is 3.8% Using equation (11), re-compute the firm’s required rate of return (Hints: Compute the growth rate of dividends for years 2007 and 2008 and then determine the 2008 price using equation (10).