1.

2.

3.

Summit Systems will pay an annual dividend of $1.55 this year. If you expect Summit's dividend to grow by 5.4% per year, what is its price per share if the firm's equity cost of capital is 10.4% ? Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $4.09 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment; this is expected to continue forever. What do you estimate the firm's current stock price to be? (Hint: its next dividend is due in one year.) CX Enterprises has the following expected dividends: $1.13 in one year, $1.25 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 3.9% per year forever (so that year four's dividend will be 3.9% more than $1.32 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock