1. Microfost just paid a quarterly dividend of $0.55 on its common stock and it expects for dividends to remain at that level for the foreseeable future (it does not expect any change).
   1. What is Microfosts current stock price if the required return is 12.00%?
   2. If required return decreases to 11.50%, what happens to the value of Microfosts stock? Calculate the new value.
   3. What can you conclude about the relationship between stock price and required return?
   4. If Microfost wishes to keep its stock price at the price calculated in part b, what quarterly dividendwould it have to pay for its required return of 12.00%? (note that required return is quoted on an annual basis)