1. Suppose TB Pirates Inc. is expected to pay a $2 dividend in one year. If the dividend is expected to grow at 5% per year and the required return is 20%, what is the price?
2. Gordon Growth Company is expected to pay a dividend of $4 next period, and dividends are expected to grow at 6% per year. The required return is 16%. What is the current price?
3. XYZ stock currently sells for $50 per share. The next expected annual dividend is $2, and the growth rate is 6%.
   • What is the expected rate of return on this stock?
   • If the required rate of return on this stock were 12%, what would the stock price be, and what would the dividend yield be?