**Please show calculations for this problem**

1. Calculate todays stock price for PEG if last periods dividend was $1.48 and its dividend growth forever is expected to be 6.0% (assuming a required rate of return of 9%)?

- Using the above assumptions, how would you partition PEGs required rate of returnin terms of its dividend yield and capital gains growth rate? Please compute.

- If PEGs dividend was expected to grow at 18% for the next 2 yearsand then return to a constant growth rate of 6% thereafter, what would you model its stock price to be (again, assuming a required rate of return of 9% and D0 of $1.48).