A)

A company has just paid a dividend of 3.58$. Its discount rate is 10.5%, and the expected perpetual growth rate is 4%. What would you expect to be the stock's price today?

B)

A company has just paid a dividend of 3.50$. Its discount rate is 9.3%, and the expected perpetual growth rate is 5.2%. What would you expect to be the stock's price in one year?

C)

A company has just paid a dividend of 3.31$. Its discount rate is 9.4%, and the expected perpetual growth rate is 4.1%. What is the stock's Capital Gain Yield?

D)

Assume a corporation has just paid a dividend of $ 2 per share. The dividend is expected to grow at a rate of 4.2% per year forever, and the discount rate is 9.5%.

What is the dividend yield of this stock?

Hint 1: what do the Dividend Yield and Capital Gains Yield add up to?

Hint 2: if the dividend grows at the same rate forever, what is equal to the Capital Gains Yield?