1.An investor wants to purchase a stock that pays a dividend of $4.29 at the end of the year. This dividend is expected to grow at 2.91% for the next 6 years, thereafter it will grow at 1.79%. The investor wants to earn a return of 10.8% and plans to hold the stock forever. What is the maximum price they should pay?

How much should an investor be willing to pay for a stock that has a dividend of $2.05 at the end of this year, $4.44 the year after, $1.85 in the finally year they plan on holding the stock. They expect to be able to sell it for $20.95 after receiving the 3rd dividend payment. The investor's required rate of return is 13.34%.