Vera Charles is considering the purchase of Catalina Corporation stock. The projected annual dividends per share for the next four years are $13, $9, $6, and $2.75 respectively. Vera projects that she will be able to sell the stock at the end of the fourth year for $50.22. If her required annual rate of return on this investment is 10.75%, what is the maximum amount that she would pay for the stock today ?

Dom Dimaggio wishes to purchase the stock of Dollar Dry Dock Bank and hold the stock for four years at which time he plans to sell the stock. The most recent dividend paid on the stock last year was $3.08 per share. The bank plans to increase this dividend by 6% annually for each of the next two years, and increase the dividend again by 7% annually for the following two years. Dom projects that the selling price of the stock will be $68 per share. If he requires an annual rate of return of 17.55%, how much is he willing to pay for the stock today ?

Dom Dimaggio wishes to purchase the stock of Dollar Dry Dock Bank and hold the stock for four years at which time he plans to sell the stock. The most recent dividend paid on the stock last year was $3.08 per share. The bank plans to increase this dividend by 6% annually for each of the next two years, and increase the dividend again by 7% annually for the following two years. Dom projects that the selling price of the stock will be $68 per share. If he requires an annual rate of return of 17.55%, how much is he willing to pay for the stock today ?