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1.Suppose that today's stock price is $31.05. If the required rate on equity is 16.3% andthe growth rate is 3.1%, compute the expected dividend (i.e.

1.Suppose that today's stock price is $31.05. If the required rate on equity is 16.3% andthe growth rate is 3.1%, compute the expected dividend (i.e. compute D1)

2.ABC Inc. last paid an annual dividend of $17.8.The dividends are expected to grow by 7.8% each year. What is the amount of expected dividend in Year 21. That is, what is D21?

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