a) A stock sells for 100 and is expected to pay a dividend of 10 in the next year. If its required rate of return is 5% what is its expected price in one year's time assuming markets are efficient? b) If the one year ahead forecasted return on a portfolio is always 3% and dividends on the portfolio are known to be 2 per year in the future what is the efficient markets price of the portfolio? c) A share has required return of 5% a dividend growth rate of 2% and a required return of 5%. Good news arrives about future dividend growth; they are expected to be 1% higher than before. Use the Gordon Growth Model to compute the percentage increase in price that occurs when the news arrives. a