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PROBLEMS 1. You are given the following data: Required return Present dividend Growth rate 10% $1 5% a) What is the value of the stock?

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PROBLEMS 1. You are given the following data: Required return Present dividend Growth rate 10% $1 5% a) What is the value of the stock? b) If the growth rate increases to 6 percent and the dividend remains $1, what is the value of the stock? c) If the required return declines to 9 percent and the dividend remains S1, what is the value of the stock? If the stock is selling for $20, whar does that imply

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