1) A stock just paid an annual dividend of $1.9. The dividend is expected to grow by 10% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.5% per year, from 10% in year 4 to 4% in year 8 and stay at that level forever. The required rate of return is 12%.

A) What is the expected dividend in 8 years?

B) What is the expected stock price in 8 years?

C) What should be the current stock price?

2) A share of stock trades at $200. The stock paid four dividends of $2.33 every quarter over the last 12 months.

A) What is the dividend yield?