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problem1: Frames Corporation just paid a dividend of $1.25 a share [D0 = 1.25.] The dividend is expected to rise 12 percent a year for the next three years and then at 5 percent a year thereafter. Find the expected dividend per share for each of the next 5 years? Give your answers to the nearest hundredth.

[A] D1 =

[B] D2 =

[C] D3 =

[D] D4 =

[E] D5 =

problem2: Constant growth valuation Thomas Brothers is expected to pay a 3 dollar per share dividend at the end of the year [D1 = $3]. The dividend is expected to grow at a constant rate of 6 percent a year. The required rate of return on the stock, rs, is 19%. find out the stock's value per share? Give your answer to the nearest hundredth.

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