1. Consider Table 1, which presents data for three stocks, stock 1, stock 2, and stock 3. () Table 1 Stock price Next period Market ROE (%) Payout ratio Growth rate dividend per capitalization (%) (%) share (6) rate (%) Stock 1 1.50 20% 25% 100% 0% Stock 2 1.00 15% 10% 75% Stock 3 12.00 0.80 5% 100% 0% a) Consider Table 1. Calculate the price of stock 1 and the price of stock 2. Detail all calculations that you use. b) Consider Table 1. Calculate the market capitalization rate for stock 3. Detail all calculations that you use. c) Consider Table 1. Calculate the growth rate of stock 2. Detail all calculations that you use. d) A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payment, calculate the price of the bond. Detail all calculations that you use