1. The expected EPS (earnings per share) of Kamal inc. is $5 and the company usually retains 70% of itsearnings. Kamal inc. has a discount rate of 16%, and a return on equity (ROE) of 20%. What is Kamal inc. current stock price? Constant growth
   1. $1.25
   2. $60.75
   3. $70
   4. $75
   5. $175

2. Suppose that Molson Coors is expected to pay a dividend next year of $2.00 per share. Both sales and profits for Molson Coors are expected to grow at a rate of 15% for the following two years and then at 2% per year thereafter indefinitely. Dividend growth is expected to match sales growth. If the required return is 10%, what is the value of a share of Molson Coors?
   1. $3.05
   2. $31.04
   3. $33.07
   4. $33.72
   5. $35.70