Q3: You are considering a stock that is expected to pay a dividend of $2 next and $3 the following year. You think that you could sell it for $45 at that time. If the required return is 12%, how much should you be willing to pay for the stock?

Q4: A stock just paid a dividend of $2 and is expected to grow dividends at 4% every year forever. The required return is 7.5%.

What is the stocks dividend yield?

What is the stocks capital gains yield?

What is the stocks expected price in 7 years?