1) A stock will pay constant dividends of $6 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 23%. What is the value of the stock? Round to the penny.

2) A stock just paid a dividend of $7, and dividends will increase by 2% every year. Its required rate of return is 11%. What is the value of the stock? Round to the penny.

3) A stock will pay a dividend of $2 in one year and increase 4% every year after that. Its required rate of return is 14%. What is the value of the stock? Round to the penny.

4) PDQ Corporation is forecast to have total earnings of $1 billion next year and to pay out a total of 25% of these earnings to shareholders in the form of share repurchases and dividends. PDQ Corporation has 100 million shares outstanding. Its earnings are forecast to grow at a rate of 4% constantly. The stock's required rate of return is 10%. What is the value of a share today? Answer in dollars and round to the nearest cent.

5) What does the Total Payout Model do?

a)	Takes the sum of a stocks dividend yield and its capital gain rate.

b)	Values shares of a firm according to the present value of the future dividends the firm will pay.

c)	Values all the firms equity first rather than a single share.

d)	Values a stock by viewing its dividends as a constant growth perpetuity.