Answer the following questions for Bow River International Corporation (BRIC). Each question is separate.

1. BRIC has announced that it will pay a dividend of $1.59 at the end of next year. BRIC expects its dividend to grow at a rate of 6% per year? What is the price per share of BRIC if the companys equity cost of capital is 11%? (2 marks)

2. BRIC has a 6% coupon bond (interest paid semi-annually) on the market that has 10 years left to maturity. If the Yield to Maturity on these bonds is 7 percent, what is the current bond price (2 marks)

3. BRIC issued 7,400,000 common shares 11 year ago. The companys most recent dividend payment was $2.25, and they expect to increase the dividend by 3% each year. If the required rate of return for investors is 11%, what is your best estimate of the current price of BRICs common stock? (2 marks)