4. Calculate todays stock price for ARX if last periods dividend was $1.52 and its dividend growth forever is expected to be 6.8% and a required rate of return of 9.2%? ( 0.5 Points)

5. Using the above assumptions (Q4), how would you partition ARXs required rate of returnin terms of its dividend yield and capital gains growth rate? Please show the computation. (0.5 Points)

6. If ARXs dividend was expected to grow at 25% for the next 2 yearsand then return to a constant growth rate of 5.8% thereafter, what would you model its stock price to be (again, assuming a required rate of return of 9.2% and D0 of $1.52). (0.5 Points)