Question 6

You are thinking about buying a stock and holding it for 2 years.You expect that the stock will pay a dividend of $0.6 in 1year and $2.34 in two years.You expect to sell for $91.89 in 2 years.If the required return is 10.25%, what is the value ofthe stock.

Question 7

Analysts expect Exxon Mobil stock to pay a dividend of $3.3in 1 year and is expected to sell for $45.61at that time.If the required return is 5.4%, what is the value of the stock?