1. Suppose a company just paid a dividend of $1, and the required rate of return is 10%. The constant dividend growth rate that would be required to justify a share market price of $80 would be:
2. Car inc. is going to pay dividends of $2/share, $3/share, and $3.9/share in the next three years, respectively. Starting in the fourth year, dividends will grow at a rate of 7.4%. If the required return is 10%, what is the current stock price?
3. Fox Inc. just paid a dividend of $4 and has a stock price of $50. If the dividend growth rate is 6.0%, what is the required return? (Keep four decimal places)