You buy some shares of MJK at $250 per share. 4 years later, you sell these shares for $745.50 per share. You received total of $100 dividends during this investment period. What is your Effective annual rate (EAR)?

Some investors expect Mazzeo Industries to have an irregular dividend pattern for several years and then to grow at a constant rate. Dividends are expected to grow by 25% for two years and 20% for the next three years. After that, growth will fall to a constant rate of 7%. Last years dividend was $1.00. This amount of risk justifies a beta of 1.5. Currently, the S&P 500 market risk premium is 8% with T-bill rate of 2%. If these projections are correct, what should the stock be valued at today?