The last dividend paid by New Technologies was an annual dividend of $3million in total. Assume T-bill rate is 2.5%, S&P500 market return is 9%, beta of New Technologies is 1.2, and there are 20 million shares outstanding.

#1) Dividends for the next 4 years will be increased at an annual rate of 15%. After that, dividends are expected to increase by 3% each year. What is todays stock price per share?

#2) If the H-model is applied to the above question, what should be the stock price per share today?

		#1) approx. $65
		#1) approx. $54
		#1) approx. $43
		#1) approx. $32
		#2) with H-model, each stock is valued at approx $36
		#2) with H-model, each stock is valued at approx $48
		#2) with H-model, each stock is valued at approx $28