4 Value formula for Problem 3: 5 Po 5 B Po O Expected Rate of Return Formula: L Po Value formula for Problem 4: Po Do(1+gN) r-gN Dividend*(1 + Growth Rate %) (Required Rate of Return Growth Rate) Dividend Last Year* (1 + Dividend Growth Rate %) (Current Market Price Dividend Growth) P Dividend Last Year *(1 + Dividend Growth Rate %) (Required Rate of Return Growth Rate)

Value formula for Problem 3: Value formula for Problem 3