1. The current yield on Martin's Mills common stock is 3.6 percent. The company just paid a $1.80 dividend and plans to pay $1.86 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return (%) on this stock? a. 5.31 b. 7.05 e. 3.56 d. 15.39 e. 9.52 2. KB Adventures will pay an annual dividend of $3.15 a share on their common stock next week. Last year, the company paid a dividend of $3.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth ten years from now if the applicable discount rate is 12.5 percent? a. 75.31 b. 82.25 c. 68.41 d. 45.39 e. 99.52 3. This question pertains to the following two questions: Cellular Talk is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25 percent a year for the next three years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $0.80 per share. What is the horizon value if the required rate of return is 17 percent? a. 17.31 b. 12.25 c. 18.41 d. 15.06 e. 19.52