1:Lets now try stock valuations in the following problems

a. Calculate the value of a stock that is expected to pay a dividend of $1 in one year and $1.20 in two years. You think that you can sell it for $15 in 2 years. Use a required return of 12%.

b. A company just paid a dividend of $2. Dividends are expected to grow at 5% forever. If investors require a return of 12%, what is the current value of the stock?

c. A stock currently pays a dividend of $2.10. Dividends are expected to grow at 4% forever. If the required return is 8%, how much should the stock sell for today?