1. You are interested in investing in a company that expects to grow steadily at an annual rate of 4 percent for the foreseeable future. The company just paid a dividend of $4.11. If your required rate of return is 18 percent p.a., what is the most you would be willing to pay for this share? (Round to the nearest cent; don't use $ sign.)

2. A company's dividend grows at a constant rate of 4 percent p.a.. Last week it paid a dividend of $5.68. If the required rate of return is 14 percent p.a., what is the price of the share 2 years from now? (round to nearest cent)

3. Each quarter, a company pays a dividend on its perpetual preference share. Today, the share is selling at $28.52. If the required rate of return for such shares is 8.2 percent p.a. compounding quarterly, what is the quarterly dividend paid by this company? (to the nearest cent; don't include $ sign)

4. ABC Limited will pay a $2.20 dividend next year (t=1) on its ordinary shares. The shares are currently selling at $88.76 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever? (as a percentage to nearest two decimal places; don't use % sign)

5. ABC Limited has a stable sales track record but does not expect to grow in the future. Its last annual dividend was $3.89. If the required rate of return on similar investments is 17 percent p.a., what is the current share price? (to the nearest cent; don't use the $ sign)

6. A fast growth share has the first dividend (t=1) of $3.56. Dividends are then expected to grow at a rate of 7 percent p.a. for a further 3 years. It then will settle to a constant-growth rate of 1.9 percent. . If the required rate of return is 12 percent, what is the current price of the share? (to the nearest cent)

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