1) Copycat Co. is selling at $22 per share. The most recent annual dividend paid was $1.2. Using the Gordon Growth model, if the market requires a return of 6%, what is the expected dividend growth rate for Copycat?

2) Huskie Motors just paid an annual dividend of $1.3 per share. Management has promised shareholders to increase dividends a constant rate of 3%. If the required return is 7%, what is the current price per share?

3) Macro Systems just paid an annual dividend of $0.54 per share. Its dividend is expected to double each year for the next three years (D₁ through D₃), after which it will grow at a more modest pace of 3% per year. If the required return is 5%, what is the current price?

4) Analysts are projecting that Vista Inc. will have earnings per share of $6.1. If the average industry ratio is about 20, what is the current price of Vista?

5) Compute the price of a share of stock that pays a $43 per year dividend and that you expect to be able to sell in one year for $55, assuming you require a 37% return.