You have just completed your very first portfolio by buying three different assets.

1. 600 shares of common stock ABC. The stock just paid a dividend of $1.98 and you expect constant growth of 3.5% forever after. The firm has a required return of 10.4%.

2. 10 Corporate Coupon Bonds GHI. The bonds pay a semiannual coupon based upon a coupon rate of 5.6% and face value of $1,000. The current YTM is 6.2% and there are eight years left until maturity.

1. According to the pricing models we learned in class, how much did you pay for your portfolio?

Consider just common Stock ABC, but now suppose you have just learned more about Firm ABC and have changed your growth expectations. They just paid the dividend of $1.98, but you now expect growth of 20% for the next two years, and then 12% for the two years following that. After that, you estimate it will grow at a constant 2% forever after. The stock has a required rate of return of 10.4%. What is the per share valuation under these assumptions?