1. Bing Company common stock paid $1.25 in dividends last year and is expected to grow indefinitely at an annual rate of 7%. What is the value of the stock if you require a 10% return?
2. You intend to purchase ZZZZ Last Corp. common stock at $50 per share, hold it 1 year, and then sell it after a $6 dividend is paid. How much will the stock price have to appreciate for you to satisfy your required rate of return of 16%?
3. Waldo Computer Chips Inc.s current stock price is $36, and its last dividend was $2.40. In view of Waldos strong financial position, its required rate of return is only 12%. If dividends are expected to grow at a constant rate in the future, and if rs is expected to remain at 12%, then what is Waldos expected price 5 years from now?