AirSeal Inc. had net income $30 million and shareholders equity $250 million in 2020. Its stock beta was 1.3. If risk free rate was 2% and expected return of S&P index was 10%, should AirSeal Inc. increase or decrease dividend payout ratio to improve stock value?

Due to the pessimistic economic situation, Bank of America forecasts the dividend per share for year end 2021-2023 will be $0.98, $0.76, and $0.55, respectively. After 2023, the economic condition will improve. The forecasted ROE and the dividend payout ratio would be 12% and 0.3 thereafter and stay the same level indefinitely. If the required return rate of BOA is 14%, what is the stock price of BOA at the beginning of year 2021?

TMZ stock has an expected return of 13% and the stock will not pay dividends until the year end of year 2026, where the dividend payment will be $15/share. The dividends will increase at 10% per year indefinitely after 2026. What is the stock price at the beginning of 2021?