1. ABC Enterprises' stock is currently selling for $41.6 per share. The dividend is projected to increase at a constant rate of 5.2% per year. The required rate of return on the stock is 12%. What is the stock's expected price 5 years from today (i.e. solve for P5)?
2. ABC's stock has a required rate of return of 14.1%, and it sells for $39 per share. The dividend is expected to grow at a constant rate of 7.2% per year. What is the expected year-end dividend, D1?