1. Div Yield is given, 2.1%, so DivYield=the next dividend/price. 2.1=1.07/x. X being the price. solve for x, which is $47.61. stock cost 47.61 a share.
using dividend growth model, because this is a perpetuity that has a constant growth of 7%, we solve for required return.
R= Dividend/Price +...