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1. Medical Corporation of America (MCA) has a current stock price of $35, and its last dividend (D.) was $2.50. In view of MCA's strong

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1. Medical Corporation of America (MCA) has a current stock price of $35, and its last dividend (D.) was $2.50. In view of MCA's strong financial position, its required rate of return is 12%. If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years? 2. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 6% per year. The stock's required rate of return is 12%. What is the expected dollar dividend at the end of three years? 3. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The stock's required rate of return is 12%. What would be a price for this stock? 4. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The stock's price is $30 a share. The stock's required rate of return is 12%. What is the expected capital gains yield at the end of the third year

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