1. What should be the stock value one year from today for a stock that currently sells for $35, has a required return of 15%, an expected dividend of $2.80, and a constant dividend growth rate of 7%? Show your calculations!

1. $37.45 B. $37.80 C. $40.25 D. $43.05

2. Anna owns shares of CD stock and for each share she expects to receive a dividend amount of $2.38 next year. Investors expect the stock to sell for $46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%? Show your calculations!

1. $38.19 B. $42.63 C. $40.53 D. $45.77

3. What should be the price of a stock that offers a $4.32 annual dividend with no prospects of growth, and has a required return of 12.5%? Show your calculations!

1. $0
2. $4.86
3. $34.56 D. $30.24

4. (Judi and Sergios question) How much does the $1,000 to be received upon a bond's maturity in 5 years add to the bond's price if the appropriate discount rate is 7%? Show your calculations!

1. $934.58 B. $710.68 C. $712.99 D. $1,0000