1.

If D₀= $5.3, g = 6%, and P₀= $66.1, what is the required rate of return on the stock? That is, solve for r.

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

2.

If D₁= $7.5, g (which isconstant) = 5.8%, and P₀= $61.7, what is the required rate of return on the stock? That is, solve for r.

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

3.

ABC Enterprises' stockis expected to pay a dividend of$1.9 per share.The dividend is projected to increase at a constant rate of 8.1% per year.The required rate of return on thestockis 15.5%.What is the stock's expected price 3 years from today (i.e. solve for P3)?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.