1. Stock Valuation [L01] why does the value of a share of stock depend on dividends?

   Dividend paid	$ 1.95
   Dividend growth rate	4%
   Required return	10.5%
   # of years	0
   # of years	3
   # of years	15
   Output area:
   Price in 0 years
   Price in 3 years
   Price in 15 years

2. Stock Valuation [L01] a substantial percentage of the companies listed on the NYSE and NASDAQ dont pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question?

   Dividend paid	$ 2.04
   Dividend growth rate	4.5%
   Stock price	$ 37.00
   Output area:
   Required return

3. Dividend Policy [L01] Referring to the previous questions, under what circumstances might a company choose not to pay dividends?

   Dividend paid	$ 2.04
   Dividend growth rate	4.5%
   Required return	$ 37.00
   Output area:
   Dividend yield
   Capital gains yield