1. NYU Inc. just paid a dividend of $3.2. They will continue paying the same dividend for 5 more years and then close down. When closing down in year 5, an extra dividend of $29 will be paid to the investor. What is the current stock price if the discount is 8.5%?
2. NCU Inc. has been paying an annual dividend of $2.1. NCU Inc. is planning to start increasing the dividends after 5 years with a growth rate of 5.9%. What is the stock price now if the discount rate is 9.2%?
3. SMU Inc. just paid an annual dividend of $1. SMU Inc. is planning to increase the dividends at a rate of 3% in the next 5 years, then at a rate of 1% indefinitely. What is the stock price now if the discount rate is 7%?
4. SMC Inc. is not paying any dividends now. However, SMC Inc. is planning to start paying annual dividends 3 years from now. The first dividend will be $3. The growth rate will be 6% for 6 years and then 2% indefinitely. What is the stock price now if the discount rate is 7%?