1. A stock is expected to pays dividends of $2 each quarter for 5 years and is expected to be sold for $75 at the end of 5 years. The required return on the stock is 6%. What is the intrinsic value of the stock?

2. You bought a stock for $10 and sold it 2 years later for $14. Each quarter you received a $0.25 dividend. What was your annualized rate of return?

3. A preferred stock pays constant dividends of $4 per year. The required return is 5%. What is the intrinsic value of the stock?

4. ABC stock is expected to pay a dividend of $4 next year (annual dividend). Dividends are expected to grow at a constant rate of 3% every year. The required return is 5.5%. What is the intrinsic value of the stock?