1. ABC’s last dividend paid was $0.5, its required return is 17.3%, its growth rate is 3.7%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P7?
2. ABC Enterprises' stock is expected to pay a dividend of $1.8 per share. The dividend is projected to increase at a constant rate of 8.7% per year. The required rate of return on the stock is 19.5%. What is the stock's expected price 3 years from today (i.e. solve for P3)?
3. A stock is expected to pay a dividend of $1.6 at the end of the year. The required rate of return is rs = 9.6%, and the expected constant growth rate is g = 7.7%. What is the stock's current price?