1. You believe that the Non-Stick Gum Factory will pay a dividend of $5 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 1% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $3 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $5 per share) dividend growth is expected to settle down to a more moderate long-term growth rate of 6%. If the firms investors expect to earn a return of 16% on this stock, what must be its price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. No-Growth Industries pays out all of its earnings as dividends. It will pay its next $2 per share dividend in a year. The discount rate is 9%.

a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What would the P/E ratio be if the discount rate were 5%? (Round your answer to 2 decimal places.)

Out of all my homework problems, these were the only ones I struggled with and got wrong. Please help! Thank you!