8. The dividend (annualized) for Alimentation Couche-Tard for 2023 will be $0.58. a. If the current ROR for the market portfolio is 8%, you would be willing to pay how much to purchase a share of Couche-Tard, assuming no dividend growth? b. The stock was recently selling for $52.50/share. The stock is implicitly providing what return (assuming a no-growth dividend)? c. Given that the growth rate of the stocks dividends is actually 3.5%, what would you expect next years dividend be? d. Given this new information about the stocks historic growth rate, what would you now be willing to pay for the stock? e. Challenge Question: If Couche-Tard should be priced at around $13, why is it selling for around $52?

2. A small commercial bakery in Montreal that specializes in cakes and pastries for special occasions (e.g., weddings) has an aging oven. The owner is thinking ahead, thinking that hed better start setting aside money to buy a new one, probably sometime in the next five to ten years. Hes got his eye on the Doyon JA6, a six-pan electric oven with steam injection. Theyre listing at about $24,000 (all in) now, but the owner suspects theyll be around $26,750 when hes finally ready to purchase. He figures he can afford to put about $3,000 per year into an account earning 8%. How many years, then, will it be until he has the $26,750 he thinks hell need?