3. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $3 per share. The dividend is expected to grow at a constant rate of 5% per year. The stock's required rate of return is 11%. What would be a price for this stock? Choice: $32.25 Choice: $37.50 Choice: $43.10 Choice: $52.50 4. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 3% per year. The stock's price is $27 a share. The stock's required rate of return is 12%. What is the expected capital gains yield at the end of the third year? Choice: 2.5% Choice: 3.0% Choice: 5% Choice: $30 at end of year