1. Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next four years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today?

2. The Diamond Outlet has current earnings per share of $2.20 and an expected earnings growth rate of 2.3 percent. The required return on the stock is 14 percent and the current book value per share is $15.25. What is the current market value of this stock?

3. Currently, Southern Foods has sales of $1.32 million, net profit of $521,400, and 125,000 shares of stock outstanding. The sales and net profit are each expected to grow by 6 percent annually. The historical P/S ratio is 7.8. What is the expected price of this stock one year from now?