• IBXs dividend in one year is expected to be $2, and it is expected to grow at 10% per year forever. If investors required rate of return of IBX stock is 15% per year, whats next years expected price of the stock by assuming its market price is always equal to its intrinsic value?

• IBXs dividend in one year is expected to be $2, and it is expected to grow at 10% per year forever. If its current stock price is equal to its intrinsic value, which is $40, what is investors required rate of return for the stock implied by the constant growth DDM?