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1) (A) The WWW Company has just paid a cash dividend of $2 per share. Investors require a 16% return on investments such dividend is

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1) (A) The WWW Company has just paid a cash dividend of $2 per share. Investors require a 16% return on investments such dividend is expected to grow at a steady 8% per year, indefinitely. i) What is your current value of the stock? ii) What will the stock be worth in ten years? as this. If the (6%) (7%) (B) A Utility Company's preferred stock pays an annual dividend of $5 per year, in perpetuity. If you want to earn 8% on your investment, how much should you offer (6%) for this stock? (C) As a start-up company Rolston Inc. plans to pay a $10.00 dividend every year beginning at the end of year ten and will maintain this policy forever. What price should you pay for one share of the company's stock if you want an annual return (6%) of 10% on your investment

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