You

are awarded a lifetime stipend from an environmental research foundation for

your contributions to climate-related innovation. The stipend will pay

one year from today, and the amount will increase by

each year

indefinitely. If the appropriate discount rate is

per year, what is the

value of this lifetime stipend immediately before the second payment is made? Write your answer to two decimal places.

over the past

25 years, a trend that management and market analysts expect to continue

indefinitely. The firm distributes

of its earnings as dividends and

allocates an additional

to share repurchases. Assuming Carleton maintains

this payout strategy and its equity cost of capital remains at

%, what is

the value of its stock according to the total payout model? Write your answer to two decimal places.

per share, followed by no dividends at

the end of the second and third years. At the end of the fourth year, you

received a dividend of

per share, and immediately afterward you sold all

your shares for

each. If your annual rate of return on this investment

was

%, what price per share did you originally pay when you purchased the

stock? Write your answer to two decimal places.