1. Consider a stock that will have price of$34.27 one year from now and pay a dividend of$3.46 in one year. The expected rate of return is 6%. What is the current price of the stock?
2. A stock has a sustainable growth rate of2.8% and apayout ratio of79%. What is the return on equity? Enter you answer as a percentage. Do not include the percentage sign in your answer.
3. Strawberry Co. has a stock that has a current price of $53.58. A year from now, the stock is expected to pay a dividend of $3.45 and the price will be $51.75. What is the expected rate of return for this stock? Enter your answer as a percentage. Do not include the percentage sign in your answer.