question 5 and 7

5. Fintech Inc. pays a constant annual dividend of $3 on its stock. The company will maintain this dividend for the next 4 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 13.4 percent? (4 points) 6. CMD Inc's most recent dividend was $2.40 per share (i.e. D0=$2.40 ). The dividend is expected to grow at a rate of 6% per year. The risk-free rate is 5%, and the return on the market portfolio is 9%. If the company's beta is 1.3 , what is the price of the stock today? (4 points) (hint: need to find the required rate of return first) 7. TDC Systems Inc just paid its annual dividend of $0.50(D0). The firm expects to experience no growth for the next 2 years. However, the firm will grow at an annual rate of 10% in the third and fourth years, and then maintain a constant growth rate of 5% thereafter. The required return is 9 percent. What is the current value per share of this stock? ( 8 points)