1. Warwic Company just paid a dividend of $4.00. You expect the dividend to grow by 3% this year, 4% next year and 6% the following year. You have determined the required rate of return on this stock should be 15%. The stock's current market price is $62. What would the terminal growth rate in years four and beyond need to be to justify this price? 2. You purchase 600 shares of Jenkins Corporation at $30 per share using an initial margin of 70%. The stock is now selling for $41 per share and you want to use the excess equity in your account to pyramid. You want to purchase 400 shares of Watson Corporation at $122 per share. If the minimum initial margin is 60%, what is the minimum amount of equity that you will have to put up in this transaction? 3. You purchase 500 shares of Richards Incorporated at $50 per share using an initial margin of 60%. Your maintenance margin is 25% and the minimum initial margin is 50%. A. How low can the stock price fall before you receive a margin call? B. If the stock price falls to $21 a share, how much additional equity must you add to your account