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1. A firm just paid a dividend of $1.75. It expects the dividend to remain the same for the foreseeable future. The required return on

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1. A firm just paid a dividend of $1.75. It expects the dividend to remain the same for the foreseeable future. The required return on the stock is 17%. a What is the value per share of this stock? b.if the stock is selling for $9.87 per share, should an investor buy the stock? Explain. 2 A firm expects earnings per share of $4.65 next year. Its benchmark P/E ratio is 17.4 times. What is the expected price of its stock? 3. A firm just paid a dividend of $0.82. It expects the dividend to grow 6% per year for the foreseeable future. The required return on the stock is 14 % What is the value per share of this stock

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