1. Tate Realty is expected to pay a dividend (Di) of $3.00 next year, with the growth in dividends expected to remain constant at 5%. The required rate of retum, Ke, is 10%. Calculate Po 2. Security analysts following the Witczak Corporation use a simplified income- statement method of forecasting. Assume that current sales are $30 million, and are expected to grow by 10.5% in year 1 and 2, The after-tax profit margin is projected at 7% in year l, and 7.2% in year 2, The number of shares outstanding is anticipated to be 450,000 for year 1, and 500,000 for year 2. Calculate the project earnings per share for the next two years. 3. Pacific Storage expects to have earnings per share of $5.25 in 2005, and $5.65 in 2006 The average price-earnings ratio for General industry is 10X (times). Pacific Storage has traditionally had a P/E ratio 12% higher than the industry, and in 2005 it is expected to be 15% higher than the industry. Calculate the expected price of Pacific's stock price in 2005 and 2006, based on expectations of EPS and P/E ratios