1. A stock just paid a dividend of $0.75. This quarterly dividend is expected to grow at a rate of 4% for the next 10 years, after which it will grow at a rate of -2% in perpetuity. What is the price of the stock if the required return is 12% (all rates are APR with quarterly compounding)?

2. A firm has a P/E ratio of 18.5, a payout ratio of 50%, and a required return of 12% per annum. What is an estimate of this firm's perpetual earnings growth rate?

3. An analyst expects earnings per share to grow next year by 5% from its current level of $5.60 per share. What is the expected stock price next year given that the P/E ratio for the stock remains constant at it's current level of 15.0?

4. A firm has long maintained a payout ratio of 30% of earnings available to shareholders. If an analyst expects a firm to also maintain their current return on equity (ROE) of 22% per year, what earnings growth rate does this imply?