3. RAK, Inc., currently has an EPS of $2.45 and an earnings growth of 8%. If the benchmark PE ratio is 23, what is the target share price five years from now? (2pts) 4. Navel County Choppers, Inc., is...

4. Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 18% per year for the next 11 years before leveling off at 4 percent into perpetuity. The required return on the company’s stock is 10%. If the divided per share just paid was $1.94, what is the stock price? (2pts)

5. Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20% next year and then reduce its dividend growth by 5 percentage points per year, until it reaches the industry average of 5% dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company’s stock is 12%, what will a share of stock sell for today? (2pts)