1. A stock will pay a dividend of $9 at the end of the year. It sells today for $103 and its dividends are expected grow at a rate of 2%. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.
2. A company pays out 34% of its earnings in dividends. Its return on equity is 10%. What is its growth rate? Enter in percent and round to two decimal places.
3. PDQ Corporation is forecast to have total earnings of $1 billion next year and to pay out a total of 24% of these earnings to shareholders in the form of share repurchases and dividends. PDQ Corporation has 100 million shares outstanding. Its earnings are forecast to grow at a rate of 2% constantly. The stock's required rate of return is 10%. What is the value of a share today? Answer in dollars and round to the nearest cent.