Complete Parts 1 and 2:

1) A share of stock trades at $169 and has a dividend yield of 2%. What was the average quarterly dividend over the last 12 months?

2A) ABC Corp. has just paid an annual dividend of $0.34. ABC has a required return of 12%. If dividends are expected to be constant, what is the intrinsic value (fair price) of ABC stock?

2B) You now think that dividends will grow by 5% from year to year. What is the intrinsic value of ABC stock?

2C) What is the present value of growth opportunities?