Q 1. Assume Boeing has about 10.3 billion shares outstanding and the stock price is $37.10. Also, assume the P/E ratio is about 18.3. Calculate the approximate market capitalization for GE. 2. Super Computer Company's stock is selling for $100 per share today. It is expected that, at the end of 1 year, it will pay a dividend of $6 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders. 3. World-Tour Co. has just now paid a dividend of $2.83 per share (Div0); its dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 16%, what is the current value of the stock after paying the dividend? 4. Michigan Co. just paid a dividend of $2 per share. Analysts expect future dividends to grow at 20% per year for the next 4 years and then grow at 6% per year thereafter. Calculate the expected dividend in year 5 5. As the number of stocks in a portfolio is increased,

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