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NCU Corp stock sells for $21.3 a share. The firm just paid an annual dividend of $2.7 per share and has a long-established record of

  1. NCU Corp stock sells for $21.3 a share. The firm just paid an annual dividend of $2.7 per share and has a long-established record of increasing its dividend by a constant 2.5 percent annually. What is the required return on this stock?
  2. SCU Corp has an average historical PE of 36. The current earning is $2.9 million. BC Corp has 1 million shares outstanding. What is the stock price?
  3. NYU Inc. is expected to pay a dividend of $4 every year in the next 5 years. NU always maintains a dividend payout ratio of 10% and has an average PE ratio of 23. The required return is 8%. What is the stock price?

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