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1. The Boulder Company just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. If investors require a return of 11 percent on the stock,
a. What is the current price?
b. What will the price be in three years?
c. In 15 years?

2. The next dividend payment by ECY, Inc., will be $4.20 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever. If ECY stock currently sells for $63.50 per share,
a. What is the required return?


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