1(a) What is the expected dividend to be paid in 5 years if a dividend of $1 was just paid yesterday, dividends are expected to grow at a constant 5% annual rate, and the firm has a 15% expected return?

(b) What rate of return is expected from a share that sells for $2.50 per share, pays $0.25 annually in dividends, and is expected to sell for $3.00 per share in one year?

(c) What is the current price of a share for a firm with $25 million in balance-sheet equity, 2,500,000 shares outstanding, and a price/book value ratio of 2?

(d) BBB Ltd., issued a 20 year zero coupon bond on 1 July 2016. It is now 1 July 2020. The current yield to maturity for the bond is 5% p.a. a. What is the price per $100 for this bond today? If, over the next 12 months market rates for this type of bond were to recover to 4% p.a. what rate of return would an investor who purchased the bond today have earned if they sold the bond on 1 July 2021?