6. You observe that Matchbox Industries has a stock price of 48.52. It pays its dividend yearly, and its last dividend paid was $3.00. The dividend is expected to grow by 3.0% yearly. Calculate Matchboxs expected rate of return.

7. You are analyzing Climatics Analytics, a stock that yesterday paid a dividend of $2.00. You expect this dividend to last three more years. Beginning in the fourth year, you expect Climatics to raise its dividend by 2% every year, into perpetuity. If the appropriate discount rate is 10%, what is the value of Climatics stock? (Show timeline.)