1. What is the estimated value of a stock, which paid a $5 dividend this year, expects dividends to grow at 6 percent, and requires a 20 per cent return?
2. What is the required rate of return on a stock if the risk-free rate is 7%, the return on the market portfolio is 15%, and the beta is 1.5?
3. What is the value of a stock expected to pay a constant $5 dividend each year forever, if the market required rate of return is 18%?
4. A stock just paid an annual dividend of $2. The dividends are expected to grow at 20% per year over each of the next three years and 5% per year thereafter. What is the value of the stock if the required rate of return is 12%?