1. A stock is expected to pay the following dividends per share over the next four years, respectively: $0.00, $2.30, 2.60, and $2.90. If you expect to be able to sell the stock for $95.83 in four years and your required rate of return is 6%, what is the most that you should be willing to pay for a share of this stock today?

2. Temple Lunch Trucks, Inc. just paid a dividend of $2.00. Dividends are expected to grow at a rate of 3% per year from here on out. If the risk-free rate is 2%, the MRP is 8%, and Temple Lunch Trucks’ stock is only 40% as risky as the market, what is the most that you should be willing to pay for a share of this stock today?

3. Jones Company preferred stock is expected to pay a dividend of $1.75 per share. If your required rate of return is 7%, what is the most that you should be willing to pay for a share of Jones’ preferred stock today?

4. Apple, Inc. just paid a dividend of $2.75 a share. Dividends are expected to grow at a rate of 8% per year for the next four years and then at a rate of 3% thereafter. If your required rate of return is 6%, what is the most that you should be willing to pay for a share of Apple stock today?