1. What will be your expected return on a $140.00 stock that just paid a $8.00 dividend and is expected to grow at 11% forever?

2. A company is expected to pay dividends of $1.80, $1.89 and $1.98 over the next three years and the growth rate is expected to remain a constant 1% after year three. What would you pay for the stock with a 12% required return?

Answer rating: 100% (QA)

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