Complete Parts 1, 2, and 3:

1) Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year. The firm always pays out 20% of net income as dividends and has 5 million shares of common stock outstanding. The required return is 12%. What is the value of the stock?

2A) Walmart has just paid an annual dividend of $3.91. Dividends are expected to grow by 8% for the next 4 years, and then grow by 2% thereafter. Walmart has a required return of 10%. What is the expected dividend in four years?

2B) What is the terminal value in four years (P4)?

2C) What is the value of the stock now?

3) Roller Inc. has just paid an annual dividend of $0.67. Analysts expect dividends to grow by 7% per year for the next 8 years, and then by 0.5% per year thereafter. The company has a required return of 12%. What is the value of the stock now?