1. The dividend yield on a stock is 3% and the required rate of return is 15%. What would you expect the appreciation or growth to be

2.The ROE of the company is 9%, its beta is 1.25, and it plans to maintain indefinitely its plowback ratio of 60%. The earnings of the company were $3 per share. The consensus estimate for market return is 14% and T-bills currently yield 6%.What is the value of this security? What is its PE multiple? What happens to the value of the stock if the company decides to reduce its plowback ratio to 30%?