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1. A company paid $1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4% per year. If the discount rate for the stock is 12% at what price, will the stock sell? What is the expected stock price 3 years from now? If you buy the stock and plan to hold it for 3 years what payment will you receive. I need answer and calculations.

2. Stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 40 % of earnings in the firm. What must be the discount rate? Calculations and answer 

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