1. ABC Inc. last paid an annual dividend of $20.7. The dividends are expected to grow by 9.3% each year. What is the amount of expected dividend in Year 3. That is, what is D3?
2. ABC’s next dividend is expected to be $2.02, its required return is 21%, its growth rate is 6%. What is ABC's expected stock price in 7 years?
3. The present value of $2,382 to be received three years hence is $2,000 if the amount could be employed to earn a 6% return annually. Write two alternative equations which could be used to determine it.