1. Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1= $1.80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 10%. What is the stock's current value per share?

2. HoltzmanClothiers's stock currently sells for $38.00 ashare. It just paid a dividend of $2.00 a share (i.e., D0= $2.00). The dividend is expected to grow at a constant rate of 5% a year.

A. What stock price is expected 1 year from now?

B. What is the required rate of return?

3. Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $2.75 at the end of each year. What is the required rate of return?

4. A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1= 2.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 15%,

A, what is the stock's expected price 4 years from today?