A stock that you are evaluating paid a dividend of $3.50 at the end of last year.

a. If the dividend growth rate is zero, what is the fair present value if the required rate of return on the stock is 10%?

b. Given the dividend growth rate is 5% forever, what is the fair present value if the required rate of return on the stock is 10%?

c. What is the dividend yield of the stock in case a above?

d. What is the dividend yield of the stock in case b above?

e. If the dividend growth rate is 5% forever, what is the required rate of return if the current market price of the stock is $52.50.