1. Starting in 5 years, a stock will make $5/share dividend payments every year, forever. R=11%. Calculate the stock price.

2. Starting in 5 years, a stock will make a $5/share dividend payment. They will grow their dividend payments by 5% every year, forever. R=11%. Calculate the stock price.

3. A firm recently paid a dividend of $7/share. Over the next 3 years, they will grow their dividend by 30%/year, and then afterwards, they will reduce it to a constant 5%/year every year, forever. R=16%.

a. How much dividend is paid in year 21?

b. What is the stock price?

4. A stock will pay the following dividends: $5 in year 1, $6 in year 2, $7 in year 3. After year 3, they will grow their dividends at a constant rate of 5% every year after. R=20%. Find the stock price.

5.A firm has a zero growth dividend policy and recently paid $2/share. Next year, they will pay an abnormally large dividend payment of $10/share. Afterwards, they will continue to pay their constant dividend payments of $2/share. R=11%. Find the stock price.