Compute the price of a share of stock

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Q1. Macro Systems just paid an annual dividend of $0.55 per share. Its dividend is expected to double each year for the next three years (D1 through D3), after which it will grow at a more modest pace of 1% per year. If the required return is 5%, what is the current price?

Q2. Analysts are projecting that Vista Inc. will have earnings per share of $6.1. If the average industry ratio is about 20, what is the current price of Vista?

Q3. Compute the price of a share of stock that pays a $44 per year dividend and that you expect to be able to sell in one year for $14, assuming you require a 56% return.

Reference no: EM133095695

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