1. XYZ Companys stock is selling for $22.50 per share. It has just announced that it will pay a $1.35 dividend later this year. Dividends are expected to grow 4.5% per year in the future. What rate of return are investors expecting to earn with an investment in XYZ?

2. Company J expects to have free cash flow (FCF) this year of $1,000,000. FCF is expected to grow at a constant rate of 3%. If company J has an 8% discount rate, debt of $15,000,000 and 400,000 shares; what is the value per share?