20. You observe a REIT which currently pays a dividend per share of $3.00. You expect dividends to grow 3.5% and believe the required return for this stock should be 8.75%. Using the Gordon Growth Model, what should be the price per share? 21. BOA originates 100 Fully Amortizing Fixed Rate Mortgages, each has a $1000 balance 8% interest rate (no fees), 2 year term, and annual payments. B0A immediately issues 10 and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 40%. What profits does BOA make immediately? 22. Using the information in the previous question, what is the value of all PO strips? 23, what would be the value of all PO strips if the expected prepayment rate in year 1 was 40%? 24, what would be the value of all PO strips if instead the expected default rate in year 1 was 40% (and no defaults in year 2)? Assume that in case of default, BOA recovers 70% of balance. 25. Back to the original 021, assume that instead of selling the mortgages immediately, BOA sell them in 1 year. What is BOA's IRR from this deal (originate mortgages at te0 and sell at t-1)? Note that BOA collects the first mortgage payment