1. How much would you pay for a share of stock paying a dividend ?(cash payout ?C) of ?$4 to be paid in one? year, a known selling price in one year ?(?P) of ?$50?, and expected return ?(R) of similar assets of 2?%?
2. Compute the price of a share of stock that pays a ?$1.50 per year dividend and that you expect to be able to sell in one year for ?$20, assuming you require a 10?% return.