1. You are considering purchasing sluck in Canyon Echo. You feel the company will increase its dividend at 4.3 percent indefinitely. The company just paid a dividend of $3.26 and you feel that the required return on the stock is 10.5 percent. What is the price per share of the company's stock?
2. A stock is expected to maintain a constant dividend growth rate of 4 6 percent indefinitely. If the stock has a dividend yield of 5.9 percent, what is the required return on the stock?