1. What is the Value of a stock that is expected to pay a constant dividend of $2 per year if the required return is 15%?
2. What if the company starts increasing dividends by 3% per year , beginning with the next dividend ? The required return stays at 15%
3. You observe a stock price of $18.75 . You expect a dividend growth rate of 5% and the most recent dividend was $1.50 . What is the required return?