Question 1: Answer the following

a) ABC Ltd will pay a dividend of $2.70 per share next year. Shareholders of ABC expect a return of 9% per year, and the dividends are expected to grow at 4% per year. What is the price per share for ABC Limited? Answer: $54.00

b) The Home Market has adopted a policy of increasing the annual dividend on their common stock at a constant rate of 3.75% annually. The firm is paying an annual dividend of $1.10 today. What will the dividend be five years from now? Answer: $1.32

c) Morris, Inc. has a preferred stock outstanding paying $8 of dividend every year. How much are you willing to pay for one share of Morris preferred stock if you require a 7% rate of return? Answer: $114.29

Please include formulas and do not use excel

Thank you :)