1) Sleep More Corporation has pledged to pay a $10 per share dividend every year indefinitely. if you require an 11% return on your investment, how much will you pay for the company's shares today? 

               Price of a share today (P0) = $90.91                    r 11%          D(0) 10                                                                           

2) Refer to part (1).Suppose that SleepMore Corp. instead offered to pay a $3.40 per share dividend next year, and pledged to increase its dividend   by 4.5% per year indefinitely. If you still require an 11% return on your investment, how much will you pay for the company's shares today?

              Price of a share today (P0) = $75.56         D(1) 3.40          g 4.5%         r  11%                                                                           

3) Refer to part (2).What is the dividend yield?                               

4) Mattresses R Us shares currently sell for $64 per share. The market requires a 10% return on the company's shares.    If the company maintains a constant 4.5% growth rate in dividends, what was the most recent dividend per share paid on the shares?              

Most recent dividend (D0) =