1. Bethel, Inc. will not pay a dividend for five years. Five years from today, the company will pay out a dividend of $4.50 (i.e., D5 = 4.50). After that, the dividend will grow at 2.70% per year forever. If the required rate of return on Bethels stock is 11%, the stocks current price (i.e., P0) is $______.

2. Bugatti, Inc just paid a dividend of $3.60 (i.e., D0 = 3.60) and its current stock price is $48. The discount rate for the company is 11%. If the market expects Bugattis dividends to grow at a constant rate forever, then the growth rate must be _____%.

3. Block Pharmacy stock sells for $39.62 today. The current annual dividend per share is $3.88. Analysts expect all dividends after that will grow at a constant rate of 3% forever. Based on this information, what discount rate is used by the market to value this stock?