.1 The risk-free rate is 1.21% and the market risk premium is 9.39%. A stock with a of 1.20 just paid a dividend of $1.53. The dividend is expected to grow at 21.24% for three years and then grow at 3.73% forever. What is the value of the stock?

#2

The risk-free rate is 2.59% and the market risk premium is 5.45%. A stock with a of 0.90 just paid a dividend of $1.94. The dividend is expected to grow at 24.97% for five years and then grow at 3.44% forever. What is the value of the stock?

3.Caspian Sea Drinks needs to raise $51.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.32 next year, which will grow at 4.11% forever and the cost of equity to be 12.61%, then how many shares of stock must CSD sell?