1.Suppose the required rate of return on stock is 11% and the growth rate is 5%. If the current price of stock is $20 then what is the value of D1 (next period’s dividend)?2.Suppose the required rate of return on stock is 7.5% and the growth rate is 4.5%. If the current price of stock is $80 then what is the value of Do?3.Suppose the current price of stock is $25. What is the growth rate if next period’s dividend is $2 and the required rate of return on stock is 12%?4.Suppose the current price of stock is $72. What is the growth rate if current period’s dividend (Do) is $3 and the required rate of return on stock is 9.375%?1.Suppose that dividends are growing at 3%. If today’s dividend is $2.5 and the required rate of return is 8% determine Po P5 P82.Suppose that dividends are growing at 4%. If next period’s dividend is $1.2 and the required rate of return is 10% determine Po P4 P6
