Question A - pay $1 div., 15% supernormal growth (3 years), thereafter div. grow at 5% (indefinitely). Cost of common equity 10%. Value of the shares?

Question B - Co. earns $1/ share (2016), pays out 60% in div., consistent 20% ROE and expects to maintain its div. Policy. What is the expected div. growth rate?

Question C - Mature company, payout ratio of 45%, g = 5%, Required total return of 10% to investors What is appropriate P/E ratio? If company is expected to $5.25/ cs next year, what the current value of the stock?