1. DVMA LTD. is expected to pay dividends of $ 2.50 every six months for the next five years. If the current price of DVMA's stock is $37.75, and its equity cost of capital is 10%, what price would you expect DVMA's stock to sell for at the end of five years?

2.

JBL Realty shares currently has a dividend payout ratio of 60%. Investors require a rate of return of 14% to invest in the common stock of companies with similar risk characteristics. (Therefore, the firm's cost of equity capital is also 14%.) Dividends expected to grow at an annual rate of 8%, and the firm is expected to report $3 in earnings per share (EPS) next year.

Using the "Earnings Multiplier Model" (or P/E Ratio Approach),what is the price per share for the company's stock?

NOTES:

Do NOT use the $ sign.