1.Assume BOSCO Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 11.4% per year thereafter until the 6th year. Thereafter, growth will level off at 1.5% per year. According to the dividend-discount model, what is the value of a share of BOSCO stock if the firm's equity cost of capital is 8.5%?

2. CROWN Enterprises expects that one year from now it will pay a total dividend of $4.6 million and repurchase $4.6 million worth of shares. It plans to spend $9.2 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.7% and it has 4.5 million shares outstanding, what is its share price today?

3. COOKIES Enterprises expects earnings next year of $3.78 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 2.7% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?