1. You expect a stock to sell for $100 after two years and pay $20 in dividends

each year. What would you pay for it today if the interest rate is 4%?

2. compute the price of a share of stock that pays a dividend of $2 per year,

assuming that you will sell it for $30 after two years and you require 12% return.

3. A stock paid $4 dividends last year, the dividends grow by 10% annually.

4. what would you be willing to pay for it today? assuming that you will hold it forever, Interest rate is12%