problem1:  Waters Corporation has a stock price of $20 a share the stock's year-end dividend is expected to be 2 dollar a share (D1 = $2.00). The stock's required rate of return is 15% & the dividend is expected to grow at the same constant rate forever. find out the expected price of the stock seven years from now?

[A] $27

[B] $23

[C] $39

[D] $28

[E] $53

problem2:   The risk-free rate of interest, kRF, is 6%. The overall stock market has an expected return of 12%. Hazlett, Inc. has a beta of 1.2. find out the required return of Hazlett, Inc. stock?

[A] 12.8%

[B] 13.2%

[C] 13.5%

[D] 12.0%

[E] 12.2%

problem3:  Cartwright Brother’s stock is currently selling for 40 dollar a share. The stock is expected to pay a 2 dollar dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7% a year forever. The risk-free rate (kRF) is 6% and the market risk premium (kM, kRF) is also 6%. find out the stock's beta?

[A] 2.00

[B] 0.83

[C] 1.08

[D] 1.06

[E] 1.00