3. Suppose Microsoft, Inc., is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, and analysts have set a one-year target price around $33.30 per share. What is the expected return of this stock? 4. You call your broker and find that Intel is currently selling for $50 per share and pays $0.16 per year in dividends. The analyst on Wall Street Week predicts that the stock will be selling for $60 in one year. Assume that after careful consideration you decide that you would be satisfied to earn 12% on the investment. Should you buy this stock? 5. Macro Systems just paid an annual dividend of $0.32 per share. Its dividend is expected to double for the next four years (D, through D.), after which it will grow at a more modest pace of 1% per year. If the required return is 13%, what is the current price when the stock is sold at fifth year? 6. Find the current market price of Coca-Cola stock assuming dividends grow at a constant rate of 10.95%, DO $1.00, and the required return is 13%. 7. LaserAce is selling at $22.00 per share. The most recent annual dividend paid was $0.80. Using the Gordon growth model, if the market requires a return of 11%, what is the expected dividend growth rate for LaserAce? 8. The average industry PE ratio for restaurants similar to Applebee's, a pub restaurant chain, is 23. What is the current price of Applebee's if earnings per share are projected to be $1.13? 9. An index had an average (geometric) mean return over 20 years of 3.8861%. If the beginning index value was 100, what was the final index value after 20 years