1. What would be your maximum investment on a corporate stock with the following information (15 points):

• Dividend just paid is 15 USD
• Dividend paid after one year is 25 USD during 3 years
• Dividend paid starting year 4 is 35 USD
• Interest rate is 10 percent

2. How much would you expect as dividend in height years from now if you have just been paid 5 USD as dividend and you know that dividends are expected to grow at a constant rate of 10 percent, and interest rate is 15 percent? (10 points)
3. How much would you pay on a stock knowing that the first dividend will be 14 USD expected to grow at 5 percent and the next dividend will be paid four years from now expected to grow at 6 percent per year forever. Interest rate is 12 percent. (15 points)