1. ABC Company's last dividend was $3.6. The dividend growth rate is expected to be constant at 9% for 4 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (rs) is 14%. What is its current stock price (i.e. solve for Po)?
2. The common stock of ABC Industries is valued at $110.8 a share. The company increases their dividend by 4.5 percent annually and expects their next dividend to be $3.75. What is the required rate of return on this stock?
3. The exchange rate is 1.1491 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 9,899 Swiss francs?