1. Seaboard Corp. earned $10 a share last year and paid a dividend of $7 a share. Next year, you expect Seaboard to earn $11 and continue its payout ratio. Assume that you expect to sell the stock for $132 a year from now.
   1. If you require 12 percent on this stock, how much would you be willing to pay for it?
   2. If you expect a selling price of $110 and require an 8 percent return on this investment, how much would you pay for the Seaboard stock?