Please use excel file to work out the examples.

$1.$ Suppose stock is expected to pay a $$0\mathrm{.}50$ dividend every quarter and the required return is $10\%$ with quarterly compounding. What is the price?

$2.$ Suppose Big D$,$ Inc. just paid a dividend of $$\mathrm{.}50.$ It is expected to increase its dividend by $2\%$ per year. If the market requires a return of $15\%$ on assets of this risk, how much should the stock be selling for?

$3.$ Gordon Growth Company is expected to pay a dividend of $$4$ next period and dividends are expected to grow at $6\%$ per year. The required return is $16\%.$ What is the price expected to be in year $4?$

$4.$ Suppose a firm's stock is selling for $$10\mathrm{.}50.$ It just paid a $$1$ dividend and dividends are expected to grow at $5\%$ per year. What is the required return?

$5.$ Suppose a firm is expected to increase dividends by $20\%$ in one year and by $15\%$ in two years. After that, dividends will increase at a rate of $5\%$ per year indefinitely. If the last dividend was $$1$ and the required return is $20\%,$ what is the price of the stock?

$6.$ Suppose we are trying to value the company Inactivision, a video game developer that does not pay dividends. If the appropriate industry PE for this type of company is $20$ and you predict earnings to be $$2\mathrm{.}50$ per share for the coming year, what price do you forecast for this stock based on its predicted earnings?