1. Weston Corporation just paid a dividend of $1 a share (i.e., D0 = $1). The dividend is expected to grow 12% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
D1 = $ ____
D2 = $____
D3 = $____
D4 = $_____
D5 = $_______
2. An analyst just estimated next year's earnings for Zippy Corp to be $5.00. If the stock normally trades at a P/E of 20, Zippy should be trading at a price close to:
a. $5
b..$20
c. $4
d. $100
e. not enough information