1) Q Corp is currently selling for $33 per share. Its dividends have been growing at a constant 2.5% per year. Next year it expects to pay a dividend of $1.75. What is its expected return (discount rate)?

2) Xytex Products just paid a dividend of $1.75 per share, and the stock currently sells for $23. If the discount rate is 12 percent, what is the dividend growth rate?

3) Could I Industries just paid a dividend of $1.75 per share. The dividends are expected to grow at a 18 percent rate for the next six years and then level off to a 3 percent growth rate indefinitely. If the required return is 14 percent, what is the value of the stock today?

4) Now suppose Could I Industries expects to grow erratically over the next 4 years. It omitted its dividend this year. It plans to pay no dividends in year 1, and then pay dividends of 1.30, 2.40 and 3.50 in years 2, 3 and 4, respectively. Beginning in year 5 it expects its dividends to grow 2.0 percent per year into perpetuity. Because of this erratic growth, investors are demanding a return of 16%. What is the value of the stock today?