# Suppose The Required Rate Of Return On Stock Is 11% And The Growth Rate Is 5%

1. Suppose the required rate of return on stock is 11% and the growth rate is 5%. If the current price of stock is \$20, then what is the value of D1 (next period’s dividend)?2. Suppose the required rate of return on stock is 7. 5% and the growth rate is 4. 5%. If the current price of stock is \$80, then what is the value of Do?3. Suppose the current price of stock is \$25. What is the growth rate if next period’s dividend is \$2 and the required rate of return on stock is 12%?4. Suppose the current price of stock is \$72. What is the growth rate if current period’s dividend (Do) is \$3 and the required rate of return on stock is 9. 375%?1. Suppose that dividends are growing at 3%. If today’s dividend is \$2. 5 and the required rate of return is 8%, determine Po, P5, P82. Suppose that dividends are growing at 4%. If next period’s dividend is \$1. 2 and the required rate of return is 10%, determine Po, P4, P6