2) Company A expects to pay its shareholders common shares, dividend $0.25 per share this year. The investor forecasted the companys share will close at $30 per share. If the required rate of return is 10%, what is the value of the shares?

3) Assume XYZ company earned a $2.50 a share last year & paid a dividend of $1.10 per share at the end of the year. Price of share at the end of the year is estimated at $22. Determine the value of the share at the end of the year if the required rate of return is 14%? If the market price is $22, would you buy stocks from this company?