1. Here is a share of stock: The current stock price is $56. The next dividend will be $2.8. The dividends will have a growth rate of 4.2% forever. What is the required return?

2.

Here is a share of stock:

The dividend that was just paid: $4

The constant growth rate of dividends (forever): 3%

Dividends occur forever.

The required return for the first 2 years: 10%

The required return after the second year (until forever): 11%

What is the stock price today?

3.

Here is a share of stock:

There will be no dividends from year 1 to year 3.

The dividend in year 4 will be $5.37 and grows at 2.5% forever.

The required return is 12.5%.

What is the stock price today?

What is the stock price in year 3?