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1. A company just paid an annual dividend of $3.50 Growth in dividends is expected to be constant at 4% indefinitely. The required return on the stock is 7%. Using the dividend discount model, what is the price of the stock today?

2. A company will pay an annual dividend of $5.00 next year. Growth in dividends is expected to be constant at 2% indefinitely. The stock is currently priced at $75.00. What is the required return?

3. A company just paid a dividend of $2.50. They expect to grow the dividend by 15% next year, and 6% the following year. The dividend is expected to will grow 4% in year 3 and every year thereafter (constant growth). The cost of equity is 7%. Calculate the stock price today.