Please show calculations and formula:

a.

Gotham, Inc. has stock that is selling for $30/share. The stock's last dividend was D0 = $1.20. The

dividend is expected to grow at 5% per year indefinitely.

i. What is the expected stock price one year from now?

ii. What is the estimated required rate of return on the stock?

b.

Jackson & Co. has preferred stock with an annual dividend of $11 per share. The preferred shares sell

for $130. What is the stock's required rate of return?

c.

Alberta Foundry & Co. has never paid a dividend. Its current free cash flow of $750,000 is expected to grow at a constant rate of 8%. The weighted average cost of capital is WACC=10%. Calculate Alberta's estimated value of operations.