Weston Corporation just paid a dividend of $$1\mathrm{.}00$ a share $($i$.$e$.,$D$0=$ $$1\mathrm{.}00).$ Assume Weston

has a constant ROE of $10\%$ and it pays out $40\%$ of net income every year.

a$.$ What would the growth rate be$?$

b$.$ What is the expected dividend per share for each of the next $3$ years?

c$.$ How much is the current price if the require rate of return is $12\%?$

d$.$ What is the dividend yield for the first year if the current market price is $$15?$

e$.$ Should you buy the Weston Corporation stock based on your calculations?

$2.$ Tresnan Brothers is expected to pay a $$1\mathrm{.}80$ per share dividend at the end of the year $($i$.$e$.,1=$

$$1\mathrm{.}80).$ The dividend is expected to grow at a constant rate of $4\%$ a year. The required rate of

return on the stock, rs$,$ is $10\%.$ What is the stock$$s current value per share? $3.$ Carnes Cosmetics Co$.$ recently paid a $$1\mathrm{.}00$ dividend. This dividend is expected to grow by

$30\%$ for the next $3$ years, then grow forever at a constant rate, g $=2\mathrm{.}25\%.$ If the market required

rate of return is $9\%,$ what is your estimation of its current stock price?