1

The current price of Wampa Inc. stock is $100. Dividends are expected to grow at 8% indefinitely and the most recent dividend was $4. What is the required rate of return on Wampa Inc. stock?

2

Hoth, Inc. will pay a dividend of $15 next year. Dividends are expected to grow at 6% after next year's dividend. The required rate of return for similar stocks is 7%. What is the current value of Hoth, Inc. stock?

3

Alphabet Inc. will not pay it's first dividend until fourteen years from now. The first dividend received in 14 years is expected to be $120. Dividends are expected to grow at 10% forever after this first dividend payment. The required rate of return for similar stocks is 25%. What is the current value of Alphabet, Inc. stock?