1.) Over the next 3 years, ABC will pay dividends of $3, $3.50 and $4 per share, respectively. You believe you will be able to sell the stock for $120 in three years and the current stock price is $90. what is your expected return?

2.) Companys Zs earnings and dividends per share are expected to grow indefinitely by 4% a year. Assume next years dividend per share is $6 and next years EPS is $6. The market capitalization rate 14%. If the Company Z were to distribute all of its earnings, it could maintain a level dividend stream of $6 a share. How much is the market actually paying per share for growth?