1.Company Y just paid a dividend of $1.50 per share. The dividends are expected to grow for the next 3 years at 6% per year, then grow at 3% per year forever. The required rate of return for LED stock is 10% per year.

1. If you purchased the share of Company y at time 2, hold it for 1 year, what is the return in Company Y stock be? What is the % of that return in dividends and capital gain?

2)What is the ex-dividend* stock price of Company Y at time 3? What does this value mean?