1. A company is planning on increasing its annual dividend by 17% per year for the next two years and then decreasing the growth rate to 6% per year forever after. The company just paid its annual dividend in the amount of $1.35 per share. What is the current value of one share if the required rate of return is 15%? PLEASE SHOW ALL WORK. USE EXCEL IF POSSIBLE.
2. The past five monthly returns for PG Company are 2.85 percent, -.65 percent, 4.25 percent, 6.39 percent, and 3.94 percent. What is the average monthly return?
3. Assume that you want to buy preferred stock from Apple. If they pay an annual dividend of $3.75 and your required return is 9 percent, what is the most that you should be willing to pay for the stock? Explain your answer