1. Boehm Incorporated just paid a dividend of $1.50 a share ( =$1.50). this dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years? Answer: 21.429

2. Woldtke Manufacturings stock currently sells for $22 a share. The stock just paid a dividend of $1.20 a share ( =$1.20), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now? What is the estimated required rate of return on Woldtkes stock? (Assume the market equilibrium with the required return equal to expected returns.) Answer D(1) = 1.32 , R= .16