1. Suppose that GW Company pays a quarterly dividend, and has just paid a dividend of $3.50. GW increases dividends quarterly at at constant effective annual rate of 3%. If investors require a 12% effective annual return on GW Company stock, what is the current stock price?

2. Company As stock is currently trading at $30 per share. The stocks dividend is expected to increase at a rate of 5% per year. The required rate of return on the stock is 10% per year. What is the amount of the dividend paid 2 years from today?

3. What rate of return is expected from a stock that sells for $58 per share, pays $2 annually in dividends, and is expected to sell for $60 per share in one year?

4. You are currently investing your money in a bank account that has a nominal annual rate of 7 percent, compounded monthly. How many years (round to two decimal places) will it take for you to double your money?

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