1.Sisters Corp expects to earn $5 per share next year. The firms ROE is 14% and its plowback ratio is 60%. If the firms market capitalization rate is 10%.

a.	Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.)

b.	Calculate the price with no growth.

c.	What is the present value of its growth opportunities? (Do not round intermediate calculations.)

2. A common stock pays an annual dividend per share of $3.80. The risk-free rate is 8% and the risk premium for this stock is 2%. If the annual dividend is expected to remain at $3.80, what is the value of the stock?