1. The dividend on a common stock just paid this year was $2.25 while the dividend paid 10 years ago was $1.05. The current dividend payout ratio is 40% and the investor's required return is 10%. What is the current P/E ratio for this stock?

2. You estimate that a stock's dividend will grow at a rate of 12% for two years and then slow to 3% forever and ever and ever and ever... You require a 12% rate of return and the current dividend is $2 per share. What is the intrinsic value of the stock?

3. Tiger Inc. retains 70% of its earnings and pays out the rest in dividends. Net income this year was $18 million, while stockholder's equity was $120 million. Current dividends are $4 per share. The T-bill rate is 4% and the return on the market index is expected to be 11%. Tiger Inc. has a of 3.25. What is the price of this stock?