1) A stock pays a constant dividend of $3.10 at the end of each year indefinitely. Calculate

the market value of P0 if the required market rate of return on this equity is 5% APR.?

2)A corporation will pay a Dividend at time zero (Div0 = $4.12) and future Dividends are

expected to have constant growth of 3% per year. If equity cost of capital is r = 5%, then

the estimated fair share price is now just prior to the dividend payment?

3)What would be the opportunity cost of capital for a property that is valued at $100,000 if it offers

a return of $10,000 forever?